‘We still have a plan’: David Jones to close 19 stores

Résumé détaillé

Talks about the department stores financial troubles and restructuring scenarios started months ago, a report to creditors says.

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.

The July meeting was not McGrathNicol’s first engagement in relation to David Jones this year.

In April, the retailer’s owner Anchorage Capital engaged the insolvency specialist via its law firm Corrs Chambers Westgarth. The law firm and McGrathNicol met eight times for a “review and analysis of limited financial information” of David Jones that month and in May this year.

McGrathNicol emphasised that this engagement was with Anchorage not directly with David Jones.

In March, media reports had revealed insurance companies were now refusing to cover stock supplied to the struggling department store chain, raising fresh questions about the retailer’s ability to stabilise its business. The group was also delaying supplier payments, a practice that continued until administrators were appointed last week.

Début de l'article, extrait de The Sydney Morning Herald. Pour lire la suite, ouvrez l'article chez le média.