David Jones has recorded its strongest-ever sales and foot traffic since entering administration, while updating its refund and exchange rules for customers across Australia and New Zealand.
The 188-year-old department store entered voluntary administration and receivership on Thursday after failing to pay rent owed to Scentre Group, the owner of Westfield. The collapse has left the future of its 6,000 employees uncertain.
Customers who bought goods before November 7 will have 30 days from the date of purchase to request a refund or exchange. For online orders, the period is extended by a further five days.
Returns will not be accepted for gift cards, food, furniture or bedding. Existing gift cards and store credits can still be used at stores that remain open, while paid orders and lay-bys will continue to be processed as usual.
David Jones has stopped selling gift cards, however, prompting consumer advocates to advise shoppers to redeem unused cards as soon as possible.
Receivers Christopher Hill, David McGrath and Joanne Dunn, of FTI Consulting, said the retailer remained fully operational and continued to serve customers throughout Australia and New Zealand.
“Since the receivers’ appointment, foot traffic and sales throughout David Jones stores and online has been at record levels, reinforcing the public’s love for David Jones and support for an iconic Australian brand,” they said in an update on Monday.
They said replenishment stock was being ordered in the normal course of business from suppliers with confirmed trading agreements, with the support of Hilco.
Promotions are expected to continue ahead of Black Friday, with the receivers saying customers would retain access to leading brands. Promotional activity in stores and online will be reviewed over the coming weeks.
The receivers said they were still assessing the retailer’s operations and that final decisions affecting staff and other stakeholders had not been made.
“At the time final decisions are made, David Jones will communicate those first to any employees and other stakeholders who may be impacted,” they said.
Last week, chief executive Erica Berchtold thanked customers for their continued support and said the business had a plan to reset for the future.
“We have a well-developed plan on how to reset the business for the future and will be working with the administrators, the receivers and our secured lender as we continue to pursue that reset of the business,” she said.
