From the Guardian · · 1m 20s
David Jones heads for administration as landlord talks fail
The 188-year-old Australian department store chain is expected to enter administration after its owner and main landlord could not reach a deal on rent.
In brief
The 188-year-old Australian department store chain is expected to enter administration after its owner and main landlord could not reach a deal on rent. David Jones is poised to enter administration after failed negotiations with landlord Scentre Group over unpaid rent, threatening the heritage retailer's future…
Talks collapse between owner and landlord
David Jones's private equity owner Anchorage Capital Partners and main landlord Scentre Group ended negotiations without reaching an agreement on rent.
Retailer has not paid rent since September
Scentre Group chief executive Elliott Rusanow said David Jones has not paid rent since September and is in breach of its lease obligations.
“They have not paid rent since September and therefore are in breach”
Landlord rejected offer to keep store trading
Scentre Group made what it described as a generous offer to Anchorage Capital Partners that would have allowed David Jones to continue trading, but the offer was rejected.
“We have made a generous offer to Anchorage Capital Partners that would have facilitated the continuation of David Jones trading and that offer has disappointingly been rejected by them.”
Administration expected as next step
Two people with knowledge of discussions said administrators would be appointed next. An administration process could help David Jones overhaul its business but puts its fate in creditors' hands.
Administrators aim to trade through Christmas
Administrators would want to keep stores trading with little interruption through Black Friday and Christmas to capture vital cash during those popular trading periods.
Here's the gist
David Jones is poised to enter administration after failed negotiations with landlord Scentre Group over unpaid rent, threatening the heritage retailer's future.
