David Jones Faces Growing Pains Under New Leadership
David Jones, the Australian department store chain owned by private equity firm Anchorage Capital Partners, has implemented extended payment terms for its suppliers and appointed a new chief executive officer, as the company reports both financial losses and improved profitability in recent periods.
"The company is positioned to manage economic conditions and all concession partner payments are current." — David Jones & Anchorage Capital Partners
Financial Performance
David Jones reported a pre-tax profit of $15.4 million for the first nine months of 2026, alongside a 3.6% increase in sales. This follows a loss of more than $95 million in the 2025 financial year, and a loss of $74 million in the 2024 financial year (the first full year under Anchorage Capital's ownership). The company is expected to report another loss for the 2025 financial year.
Supplier Payment Terms
David Jones has modified its payment policies, requiring suppliers to wait up to eight weeks after goods have sold to receive payment. The company stated that no payment changes were made without supplier agreement. Some suppliers have reported delayed payments, with payment terms extended from January to as late as March in some cases. Some suppliers have reportedly been denied trade credit insurance.
Industry sources indicate David Jones has been late in paying some suppliers and is transitioning to 60-day payment terms. The company attributed a previous attempt in January to extend payment deadlines to an IT upgrade.
Leadership Change
Erica Berchtold has been appointed as the first female CEO of David Jones in its 188-year history. Berchtold previously served as chief commercial officer of David Jones and CEO of The Iconic. She succeeds Scott Fyfe, who led the company for nearly six years. Fyfe stated his departure was by mutual agreement and called his tenure "an honour to lead the business through some of the most challenging times, starting in COVID."
Berchtold stated she aims to modernize the business and renegotiate terms with suppliers. She previously spent a year attempting to save Mosaic Brands, which collapsed in October 2024.
Financial Arrangements
Anchorage Capital acquired David Jones in 2023 for $92.5 million (some sources report $100 million in 2022). This represents a significant reduction from the $2.1 billion paid by its previous owner in 2014. Anchorage states it has invested $250 million in store renovations, loyalty programs, and digital infrastructure.
David Jones has secured a new three-year loan from Hilco, replacing a previous lending arrangement with Gordon Brothers. The company stated its lending facility with Gordon Brothers remained in place until 2028.
Business Operations
David Jones has introduced a new loyalty program with Qantas and revamped its food hall in Sydney, with plans to bring back the oyster bar and deli. The company has lost exclusivity for certain beauty brands, with Mac Cosmetics scheduled to transition to rival retailer Myer by mid-2026. Health and beauty products constituted 22 percent of David Jones' $2.2 billion sales in 2024.
Industry Context
Department stores globally are experiencing pressure from online retail, smaller competitors, and reduced foot traffic. Some suppliers have reportedly broken contracts with David Jones and moved to rival Myer.
Analyst Johannes Faul of Morningstar expressed skepticism regarding the potential for Australian department stores to reverse a long-term decline, citing structural challenges and the impact of online retailers like Amazon.