The regulars

We can’t stop talking about: Too many DJs?

Alyx: What’s happening with David Jones right now? Is it closing immediately? After Christmas? Never? It seems like a real rollercoaster.

Jonathan: David Jones collapsed into administration on 5 November. This week, it announced the impending closure of half of its 38 stores.

Under a dual appointment, David Jones is being run by receivers FTI Consulting, while administrator McGrathNicol seeks a buyer. Its private equity owner, Anchorage Capital, is no longer in control, but may make an offer to re-purchase the slimmed down network.

Such processes are, by nature, fraught with uncertainty.

There is no official closing date for the 19 stores slated to shut, although receivers expect them to close by the end of the year. Store managers are under instructions to clear stock, so expect plenty of promotions.

Most closures will be in outer suburban and regional areas but there are exceptions. Notably, the retailer’s Perth store on Hay Street Mall will soon cease trading.

DJs has had a torrid few years with the business reporting a $74m loss for the 2024 financial year. It then failed to provide the 2025 accounts.

It was also falling behind – or ignoring completely – invoices from suppliers as early as April.

Prospective buyers will now bid for the remaining network of premium stores in prime locations, although further closures are not out of the question. Creditors and potential bidders will get a better glimpse into just how much financial stress DJs is under in the coming weeks.

Alyx: I’ve heard that since their receivership was announced, store visitation is breaking records. What’s up with that?

Jonathan: There was an immediate spike in customer numbers after receivers were appointed, which included those who (incorrectly) believed the stores were closing immediately and wanted to say goodbye. Others went to use gift vouchers, fearing they could soon be worthless, and some visitors thought there would be a closing down sale of sorts, where they could grab a bargain.

Given so many people have strong, nostalgic ties to David Jones, it’s no surprise there has been a jump in visitations. That could even lead to a bumper Black Friday and Christmas, but it won’t resolve all the underlying issues.

Alyx: There’s an established playbook for what it takes to make a department store thrive: it’s a focus on brilliant, in-person customer experiences and service, a sense of discovery and delight. Basically the things David Jones used to be known for, before it became a series of airport-style brand concession stands next to a forest of garment racks with no sales assistants to help navigate them. What are the chances of a return to the golden days?

Jonathan: While the process is designed to reorient David Jones, be it through a sale, recapitalisation from Anchorage Capital, or a carve-up, it’s unclear whether anyone has the appetite to pump enough money into the business to try restoring it to its former glory.

The administration and receivership is happening at the worst possible time for retail, with a string of interest rate rises and elevated living costs severely hampering discretionary spending.

Meanwhile, its primary rival, Myer, is running heavy price promotions, which means DJs’ only probable option is to find a way back into prestige sales. It has lost trust with a lot of suppliers which it also needs back on board.

This is no small task, however it’s thought that there must be value in at least some of the flagship stores and in the enduring strength of the 188-year-old brand name itself.

Alyx: If I wanted to buy and fix up DJs as a vanity project, how much cash would I need lying around?

Jonathan: That gets complex quickly.

In 2023, South Africa’s Woolworths Holdings sold the operating business to Anchorage for roughly $100m. You could make the argument it’s worth less now, but that is just a headline amount and doesn’t get to the actual costs of buying and running the business.

David Jones’s main lender, Hilco Global, holds the keys to this whole process and is owed about $140m, according to the Australian Financial Review. It is a secured lender and will want to be paid.

So you could just give them that cash, or convince Hilco to refinance and back you as the new owner. But then you would need to plough money into revitalising the stores, winning back brands that pulled out over unpaid bills, and paying for fresh stock.

Would it be profitable on your first day or would the turnaround take a bit of time – more losses – while wages bills and other operating costs accumulate?

We are now running into the hundreds of millions of dollars, probably consisting of a mix of cash and loans.

Your week ahead

  • What to watch | No more hiding from spoilers: You Can See Everything is finally in cinemas. – AG

  • What to play | If the world is feeling a bit grim right now, why not escape into the world of Tanuki: Pon’s Summer, a gentle game where you play as a raccoon postie making deliveries on a bike. Hell, even if you’re the happiest person in the world, there’s never a bad time to be a raccoon postie on a bike. – Sian Cain, deputy culture editor

  • What to read | M John Harrison made history this week, becoming the first sci-fi author to win the Booker prize with his novel The End of Everything. It is eerie, deeply weird and 198 pages long – knock it out this weekend. – SC

  • What to cook | There’s lots of grapefruit going around, but it is a cursed citrus – its pink flesh and fresh fragrance promise a sherbet-y flavour, but it tastes like evil. To temper its mouth-puckering tartness, bake it into Benjamina Ebuehi’s syrupy loaf cake. – Yvonne C Lam, deputy lifestyle editor

  • What to book | If you’ve ever wanted journey inside that rave scene from The Matrix Reloaded – you have a pulse, right? – then the afterparty at next year’s Mardi Gras may be your chance. For the first time, they’ll be hosting it in the tunnels underneath Allianz Stadium. The tunnels! Also in a peak Y2K rave move, Fatboy Slim is playing. Tickets are on sale now. – AG

Wishlist

Having recently dashed my earbuds on the ground for – approximately – the 11 millionth time, it occurs to me I should probably get a house for them. This one from Sydney brand Maison de Sabre looks particularly slick and, more critically, sturdy. – AG

Open tabs

  • While covering Russell Brand, Amelia Gentleman also attended another rape trial to explore any similarities and differences. She was the only reporter at the second trial. At one point I gasped aloud while reading this piece. – SC

  • Set in the context of “the largest expansion of gambling in American history”, Nick Berradini’s exceptional (very) long read in the New Yorker has the trajectory of a slow moving car crash. It follows NBA player Jontay Porter, whose online sports betting addition ultimately derailed his promising career. Entirely engrossing. – Celina Ribeiro, deputy features editor

Your recommendations: romantasy and microdramas

I’ve asked you for recommendations over the past few weeks, and you’ve delivered.

Reader Janet was also underwhelmed by A Court of Splintered Harmony, but says her pre-order of Cassandra Clare’s latest, The Last King of Faerie, arrived and is so much better. If you’ve already dipped into the Mortal Instruments series before, it’s worth a revisit, because it’s “clear that she has gotten better at writing”. Janet praises the characters’ believability and their cultural, gender and neurodiversity, and says: “If you like Shadowhunters fighting demons, agonising over the state of relationships, gay marriage and adopting baby warlocks, read Clare.”

Meanwhile, Bec has been binging Jay Renshaw’s micro-sitcom The Chit Show. “It’s really good, Pam from The Office has a bit part in it.”

Tell us your David Jones memories

Do you have a particularly happy memory or funny story about David Jones? Did you get a great outfit there that you’d like to show off? Are you running to a closing store right now for the sales? Tell me about it, and send a photo, by replying to this email, or contacting me on savedforsunday@theguardian.com. We’ll share some reminiscence in the coming weeks.