Canberra store to close in big David Jones 'urgent' cutbacks

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Axe taken to 188-year-old iconic store chain with one big casualty in the ACT.

One of the two David Jones stores in the ACT is down for closure but the other one is not on the company's hit-list.

The receivers called in to try to salvage the loss-making chain said that Woden was one of 19 stores across Australia and New Zealand slated for closure while the Canberra Centre store was not on the list. They called the restructuring "urgent".

The receivers said that the stores to be closed would continue trading in the immediate future but probably "cease trading by the end of the year".

"David Jones staff have been informed today, with the consultation period continuing over the next seven days," the receivers FTI Consulting said.

"The receivers recognise the restructure will have a material impact on many individual members of the David Jones team and commit to treating all employees with fairness and respect throughout the process.

"Whilst the impacts are highly regrettable, the receivers believe the steps are unavoidable if David Jones is to continue as a viable business and these measures will help give David Jones the best chance for a sustainable future."

It is not clear what impact the departure of David Jones will have on the Westfield Centre in Woden where it occupies 12,000 square metres. It is a substantial tenant there but not the only one. Big W, Coles and Woolworths and a Hoyts cinema complex are also there.

The 188-year-old retailer has been unable to pay its rent and its rising debts prompted the calling in of the receivers.

DJs declared itself insolvent last week and called in administrators McGrathNicol. The role of an administrator is to run a business and assess how to make it profitable. In the case of David Jones, that will now mean the closure of half of the 38 stores across Australia and New Zealand.

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