Shoppers told to consider using David Jones gift cards as iconic chain fights for future
David Jones customers have been told to consider using any gift cards they have amid growing concerns over the future of the iconic department store chain in Australia.
Reports David Jones could enter voluntary administration have sparked warnings over the retailer’s gift cards, following news it has reached breaking point after recording steep losses, putting its future in doubt.
David Jones customers have been warned to use their gift cards as soon as possible. iStock
Consumer experts are urging shoppers to spend their balances as soon as possible after customers who attempted to redeem their cards over the weekend reported being unable to do so.
Nine.com.au has since been told this was due a global outage affecting GiveX, the third-party platform that supports David Jones Gift card services, and it has since been restored, although maintenance is still ongoing in some regions.
David Jones is at risk of insolvency, according to reports. Photo: Janie Barrett
In response to our inquiry regarding the future of the business in Australia, a David Jones spokesperson told nine.com.au: “David Jones does not comment on speculation in the media.
“CEO Erica Berchtold’s priority is to accelerate the execution of the business’s INSPIRE30 strategy and is in advanced discussions with key stakeholders about how David Jones is adapting to the ever-changing retailing landscape.
“This includes a review of the portfolio of stores across Australia and the trading terms with suppliers and brand partners.”
Eden Radford from consumer advocacy group Canstar advised David Jones customers to check whether their gift cards remain valid and to “put them to some good use”, following reports of redemption difficulties.
She told 9News unused gift card holders risk ending up at the end of a long list of creditors if a business becomes insolvent, noting: “Frankly and in reality most of the time that often means you don’t get what you paid for.”
David Jones reported a pre-tax loss of $95.45 million for the 2025 financial year (FY25), prompting an urgent restructure. The figures came to light when the retailer filed its delayed annual accounts with the Australian Securities and Investments Commission (ASIC). The prior period saw a pre-tax loss of $74.12 million.
While David Jones managed to secure $10m in emergency funding to stock up ahead of the crucial 2026 festive shopping season, supplier confidence has been shaken, with brands including Country Road and Gucci pulling out amid the surrounding uncertainty.
The last-minute funding was secured by UK-based restructuring and special-situations specialist Hilco Global, brought in after David Jones missed payments to several key concession holders.
In January, stores at Castle Towers in Sydney and Tuggerah on the Central Coast closed. Rhett Wyman
Industry analysts expect that if David Jones is to survive, it will need to continue shrinking its physical footprint in favour of driving digital sales.
Retail expert Gary Mortimer told 9News: “I think what we will see is a smaller footprint of David Jones stores,” while reassuring shoppers that he does not believe the chain will suffer an outright “collapse.”
In January, stores at Castle Towers in Sydney and Tuggerah on the Central Coast closed.
The emergency funding bought time for owner Anchorage Capital Partners and Chief Executive Erica Berchtold to negotiate with landlords to dramatically downsize the retailer’s 38-store footprint, potentially cutting it by half to stabilise operating overheads.
