Australia's oldest department store chain, David Jones, was placed into voluntary administration on Wednesday, ending 188 years of independent trading amid mounting losses and a breakdown in rent talks with landlord Scentre Group.

Administrators from McGrathNicol were appointed by the board, while the company's main financier installed receivers from FTI Consulting to take day-to-day control. The 38 stores and online operations continue to trade as the receivers review the business and seek buyers or recapitalization options.

The collapse stems from years of steep losses, including a $95.5 million deficit in the 2024/2025 fiscal year, underperforming stores, and failure to pay rent at 17 Westfield locations since September. Negotiations with Scentre Group, which owns the shopping centers, collapsed after the retailer rejected restructuring proposals and Scentre declined demands for access to bank guarantees.

Private equity firm Anchorage Capital Partners acquired David Jones in 2023 for around $100 million. The chain employs more than 6,000 staff, with potential store closures and job losses expected in the lead-up to Christmas as the receivers restructure operations.

David Jones has faced broader retail challenges, including shifts to online competitors and weak consumer spending. Receivers have indicated they will assess the retail footprint and supply chain issues while keeping core stores open during the process.

The administration marks the first time in its history that the heritage brand has sought insolvency protection. Unsecured creditors, including suppliers and gift card holders, face potential losses as the restructuring unfolds.