Ben Nothling has a more personal connection to David Jones than most Australians. As the great-great-great grandson of Welsh merchant David Jones, who founded the eponymously named department store in 1838, Nothling grew up hearing family stories about the retailer's early buying trips to the United Kingdom to source premium goods. Now the entrepreneur is among hundreds of suppliers left unpaid after the 188-year-old chain's spectacular collapse, with his footwear label Holster owed $130,000.
When Nothling's father Martin heard the news, he was speechless. "He actually couldn't believe it," Nothling said. "He's really sad it's all come to that. How did they collapse?"
A 15-year relationship that ended without warning
Nothling co-founded Holster with his wife Natalie Miller roughly 25 years ago, after the pair returned from Bali with a selection of shoes that sold quickly to eager buyers. Natalie designs the prototypes, and the brand, which sells vegan slides, sandals and sneakers, now turns over approximately $10 million a year and is stocked in 30 countries.
Holster entered David Jones around 2010 and, by Nothling's account, the relationship was smooth for 15 years. Payments arrived on time without issue. That changed a few months ago when David Jones began pushing out its payment terms. Two shipments of shoes delivered in June and July were not paid for, which was unusual enough to raise alarm.
"They came back with a weird email saying, 'We need to check. We'll come back to you,'" Nothling said. "Soon as they were overdue, we froze their account."
A third shipment worth $118,000 was held back as a precaution. David Jones' finance team sent through promised payment dates, but those dates passed without any money arriving. Shortly after, the retailer collapsed into administration and receivership. Nothling says the decision to freeze that third shipment likely saved the business from a far worse outcome.
"We could've lost more than a quarter of a million dollars if we kept shipping stock," he said. "It's a lot of money to lose. It makes you quite stressed and angry."
Nothling will be among the creditors eligible to attend the first creditors' meeting, scheduled for Thursday 17 November at 11am via Zoom.
Questions over how David Jones was run
Nothling is not alone in asking how one of Australia's most recognisable retail names reached this point. David Jones entered voluntary administration and receivership after failing to meet rental obligations to major landlords, with the chain more than a month behind on rent to Scentre Group, which owns the Westfield centres housing 17 of its 38 stores.
Nothling points to the period between 2014 and 2022, when South African retailer Woolworths Holdings (which has no connection to the Australian supermarket chain) owned David Jones, as a turning point. During that time, key properties were sold and replaced with long-term leases. The Melbourne Bourke Street Men's store was sold for $121 million in 2020, and the Sydney Elizabeth Street flagship fetched $510 million. Those lease obligations ultimately became the financial pressure point that pushed the retailer over the edge.
"You're just upset about the way the company was run," Nothling said. "Suppliers all got treated not in a good way. You feel sorry for the staff. It's just a huge ripple effect."
About 6,000 jobs are now at risk as receivers FTI Consulting consider which stores from the network should be retained, closed or restructured. Market speculation has included the possibility that some locations, including a store in Auckland, could be axed to allow the business to focus on larger capital city sites.
Record sales but uncertainty remains for suppliers and gift card holders
Despite the turmoil behind the scenes, David Jones stores have seen a surprising surge in foot traffic since the administration was announced. Receivers from FTI Consulting described sales and in-store visits as being at record levels, with Australians appearing to rally behind the brand. The receivers are now placing replenishment stock orders with suppliers that have confirmed trading agreements in place.
Administrator McGrathNicol has described the level of inbound interest from potential buyers as "extraordinary," with both domestic and international parties expressing intent. Expressions of interest were due by Friday, with the administrators noting that interest came from parties with experience in both turning around and operating major retail department stores.
For those holding David Jones gift cards, the advice is clear: gift card holders are urged to spend their balance in-store or online as soon as possible, given the retailer has stopped issuing new cards and the outcome of any sale remains uncertain. Change-of-mind returns in store have also been reduced from 30 days to two weeks, while online purchases have been given a small additional window to account for delivery times.
For Nothling, the personal dimension of the collapse adds an extra layer of grief to the financial stress. His ancestor, whose photograph taken around 1860 still exists, built something that lasted nearly two centuries. Watching it unravel, and chasing a six-figure debt in the process, is not how anyone imagined the story ending.
"David Jones was a big account to us," Nothling said. "We dealt with them for 15 years. They'd always paid us on time."
