David Jones is reviewing its store portfolio across Australia and trading terms with suppliers and brand partners, the company confirmed through a spokeswoman, as several international luxury brands have withdrawn from the chain. The retailer operates 38 stores across Australia and New Zealand and is estimated to employ more than 5,000 people.
The review comes after David Jones has reportedly been unable to pay some suppliers on time. Christian Dior, Gucci and Chanel are among the luxury brands that have withdrawn from the 188-year-old retailer, SBS News reported.
Erica Berchtold was appointed chief executive in June with a brief to improve cost efficiency and operational capability. A company spokeswoman told 7NEWS that Berchtold's top priority is faster execution of the INSPIRE30 strategy, with advanced discussions under way with key stakeholders on how David Jones is adapting to the changing retailing landscape.
Australia's retail environment has been under pressure from rising interest rates and higher fuel prices, which have led consumers to reduce spending.
The review of trading terms and supplier arrangements may affect suppliers who have reportedly already experienced delayed payments. If stores are closed as part of any restructure, the more than 5,000 estimated employees across Australia and New Zealand could be affected.
Reporting: SBS News
Background: The Guardian, 7NEWS
Written by Pick & Scroll News from the reporting and documents linked above.
