Key facts
- McGrathNicol said it was engaged in April 2026 to analyze David Jones's financial information but did not directly advise the group.
- The administrators said Woodhouse left a July meeting when potential restructuring was discussed and no working group was formed.
- McGrathNicol said David Jones Group paid it $1 million upfront on November 4 to run the administration.
- The administrators said they expect to access another $3 million to $4 million of funding.
- McGrathNicol said it will seek to delay the second creditors' meeting by three months, to early April 2027.
- Several businesses told Guardian Australia that David Jones put small suppliers on tiered and extended payment terms.
McGrathNicol, the administrator of David Jones, said in its first circular to creditors on November 10, 2026 that it had been engaged by the lawyers for the retailer's owners, Anchorage Capital, as early as April 2026 to analyze some of the department store group's financial information. It said it did not directly advise the group or review its ability to pay debts.
By July, David Jones group director Simon Woodhouse and its biggest lender, Hilco, met McGrathNicol to discuss the retailer's financial performance and potential restructuring, and to form a working group to discuss the issues regularly. The administrators said Woodhouse left the meeting when potential restructuring was discussed and no working group was formed.
McGrathNicol said it did not discuss David Jones's financial position again until October 22, when Woodhouse asked it to help plan a potential voluntary administration. Woodhouse and others held another five meetings in the following fortnight before a series of briefings on November 4, the day before the administration was announced, as the company negotiated with its landlords and prepared for collapse.
McGrathNicol said David Jones Group paid it $1 million upfront on November 4 to run the administration, and that it expected to access another $3 million to $4 million of funding. The first creditors' meeting will take place on November 17. A second meeting is typically required six weeks later, but McGrathNicol said it would apply to have that delayed another three months, to early April 2027, to give it more time to sell the business or raise more funds.
The letter did not offer more detail on David Jones's financial situation or how long it had been insolvent. McGrathNicol said it had asked the company's directors to prepare a report on their business, property and financial circumstances. FTI Consulting, which is running David Jones's day-to-day business during the administration process, said on November 9 that the company had remained fully operational.
Several businesses told Guardian Australia that David Jones was putting small suppliers on tiered and extended payment terms, with brands forced to accept deeper discounts to get faster payments. The process could leave unsecured creditors with substantial losses, with unpaid product suppliers and shoppers holding unredeemed gift vouchers most at risk, according to the report. Anchorage Capital, David Jones and Hilco were contacted for comment on November 10 and the report did not say whether they responded.