Alarm bells were ringing for David Jones months before collapse

November 11, 2026 — 10:45am

David Jones’ private equity owners convened a meeting with representatives from insolvency specialist McGrathNicol and lender Hilco as early as July to look at restructuring options before further meetings in late October led to the formal appointment of voluntary administrators.

Representatives from each party met on July 27 to “discuss and understand David Jones Group’s financial performance and potential restructuring scenarios” and set up a working group to continue regular discussions, according to an initial report to creditors.

Months before, David Jones had asked suppliers to stretch payment terms out to 90 or 120 days, which sparked concerns about the department store’s ability to pay its bills.

Suppliers, hundreds of which have gone unpaid after David Jones’ collapse last Thursday, have been invited to join a first creditors’ meeting at 11am on November 17 via Zoom, and to submit proof of debt forms by 4pm November 16.

Gift cardholders have been redirected to register their claim in an online form.

Before the initial July 27 meeting, Anchorage Capital’s law firm Corrs Chambers Westgarth engaged McGrathNicol and met eight times for a “review and analysis of limited financial information” of David Jones.

Anchorage Capital managing partner Simon Woodhouse left the July 27 meeting after discussions about David Jones’ financial troubles and did not take part in discussions about potential restructuring, and no working group was established, the report said.

Over several phone calls, meetings and email exchanges from October 22, Anchorage Capital representatives discussed the potential engagement of McGrathNicol as administrator and briefed them on negotiations with landlords.

Anchorage Capital paid $1 million upfront to McGrathNicol on November 4, with an agreement for a further $4 million expected to be signed “in the coming days”.

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Jessica Yun is a business reporter covering retail and food for The Sydney Morning Herald and The Age.Connect via X or email.

Colin Kruger is a senior business reporter for the Sydney Morning Herald and The Age.Connect via email.

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