The move lands just weeks into a new chief executive’s tenure and is already raising doubts about the retailer’s turnaround strategy.
The department store chain, owned by Anchorage Capital Partners, has battled suppliers for months over slow payments for stock, even as it works to stabilise its balance sheet. Brands had pinned hopes on the refinancing of a loan now sitting above $200 million, expecting that fresh funding would translate into faster and more predictable payments.
The retailer has contacted some suppliers proposing a stretched 20 week repayment schedule for upcoming summer inventory. The pitch is framed as a way to lift stock levels ahead of the key summer trading period, not simply as a cash preservation move.
Under the proposed plan, David Jones aims to bring in more product for the warmer months while spreading out what it owes over more than four months, effectively using supplier terms as working capital. For brands, that means carrying the financial burden longer, even as they fund production, logistics and their own staff costs.
The timing is awkward, coming barely a month after the new chief executive stepped in and just after refinancing that suppliers assumed would ease payment pressures. Many now see the request as a signal that, despite new ownership and fresh debt facilities, the retailer is still leaning heavily on its partners to support its recovery.
