David Jones to shut half its stores as receiver unveils urgent overhaul

Nineteen of David Jones' 38 stores will close by the end of the year, receiver FTI Consulting confirmed on Wednesday afternoon. That is half the department store chain's entire network, cut in what the receiver called an "urgent" overhaul of the business.

No definitive closure dates have been set. The stores are likely to stop trading before the year ends.

Which stores are closing?

The closures span every state in Australia, plus one site in New Zealand. The full list released by FTI Consulting:

• NSW (7): Green Hills, Hornsby, Macarthur Square, Macquarie Centre, Parramatta, Warringah Mall, Wollongong Central
• Victoria (3): Glen Waverley, Highpoint, Malvern Central
• Queensland (2): Robina Town Centre, Sunshine Plaza
• South Australia (2): Marion, West Lakes
• Western Australia (3): Carousel, Garden City, Hay Street Mall
• ACT (1): Woden
• New Zealand (1): Newmarket, NZ

How did the chain reach this point?

The mechanism is a lender-driven receivership stacked on top of an administration. Lender Hilco Capital appointed FTI Consulting as receiver last week. That followed the appointment of voluntary administrators from McGrathNicol.

The retail collapse had visible warning signs. David Jones had been negotiating with landlords over rent before the appointments. The company reportedly had not paid rent to Westfield owner Scentre Group since September.

Who wants to buy the 188-year-old retailer?

Expressions of interest for the business are due at the end of this week. The deadline lands as shoppers flock to David Jones stores hunting bargains, and the chain recorded its best sales figures over the weekend following the administration news.

Not everyone shares in the windfall. Small business suppliers say they have been "crushed" by the chain of events.

What does the founding family say?

Charles Edward Lloyd Jones, a fifth-generation member of the founding family to work in the business, and the last, laid out a test for any buyer. A new owner must shrink the retail footprint and store count while making the offering as distinctive as possible, he said this week.

Skip that fix, he warned, and David Jones will end up in "the same situation in another three to five years".

The store closures now give prospective buyers a leaner network to price. Whether a buyer can rebuild a 188-year-old brand around the remaining 19 sites, and do it before the next rent bill lands, is the question this week's expressions of interest will begin to answer.