David Jones's embattled suppliers have been asked to continue providing goods and services to the collapsed retailer, despite having no guarantee they will be reimbursed for previously unpaid debts.
asserted
they → ask → debts
Documents seen by ABC News show the unclear situation facing suppliers after the 188-year-old retailer was plunged into receivership and voluntary administration this week.
uncertain
retailer → see → receivership
"It is really stressful," Jacob Leung told ABC News.
asserted
Leung → tell → News
It was only 18 months ago that Mr Leung and his wife, Sarah Jane, started supplying David Jones with handwoven blankets from their small business, Slowdown Studio.
asserted
Leung → start → business
"We'd never received an order that size.
asserted
We → receive → order
We loved the brand, the heritage, the whole David Jones experience.
asserted
We → love → brand
We were so pumped," he says.
asserted
he → pump → ?
The local business sent another order to David Jones just last month.
asserted
business → send → Jones
They say they have not seen the $75,000 they are owed and their invoice is now overdue.
asserted
invoice → say → 75,000
"It has massive implications not just for us but our manufacturers, our staff, the invoices we need to pay,"he said.
asserted
we → have → invoices
DJs in administration, but receivers appointed
asserted
receivers → appoint → administration
The David Jones collapse is a complicated affair, with receivers appointed on behalf of the company's biggest lender, Hilco, to protect an investment estimated in the hundreds of millions.
asserted
receivers → appoint → millions
Documents seen by ABC News sent out from the receivers' firm, FTI Consulting, maps out the next steps for suppliers.
asserted
Documents → see → suppliers
It notes David Jones is "continuing to trade in the ordinary course under the control of the receivers" while its administrators push for "the recapitalisation and/or sale" of David Jones.
asserted
administrators → note → Jones
It goes on to say that any "outstanding debts owed by David Jones" when the administration started on November 5 are now "subject to the outcome of the administration process".
asserted
administration → go → process
Meanwhile, FTI notes that suppliers can keep up their relationship with David Jones if they create fresh supplier accounts with the receiver.
asserted
they → note → receiver
"All properly incurred post-appointment trading invoices will be paid by the receivers in accordance with existing trading terms,"it stated.
asserted
invoices → incur → terms,"it
David Jones's receivers are telling brands they can keep supplying the retailer, while luxury brands are visibly stripping stock from its stores.
asserted
brands → tell → stores
Gucci, Valentino and Saint Laurent are among high-end brands that have left shelves bare as concern spreads about the retailer's future.
asserted
concern → leave → future
Mr Leung is not sure what he will do next and if their business will keep supplying stock to David Jones.
asserted
business → do → Jones
Six-figure invoice owed
It is a similar predicament for another start-up Australian label, Beysis, which says it is owed for an invoice in the six figures for a delivery earlier this year.
asserted
it → owe → delivery
Co-founder Jessica Bryce said they likely could not justify the risk of continuing to sell to David Jones through the administration process.
uncertain
they → say → process
"I don't think that we would.
asserted
we → think → ?
We're owed money and the stock," she said.
asserted
she → owe → money
"As a small business we just wouldn't take that risk.
asserted
we → take → risk
It hurts.
asserted
It → hurt → ?
It affects everything that we do.
asserted
we → affect → that
Ms Bryce said they had heard reports in the industry that big brands were being put on payment plans by David Jones, while Beysis was getting paid erratically.
asserted
Beysis → say → Jones
It affects how many casuals we can put on, how much marketing we can spend, inventory.
asserted
we → affect → marketing
It affects everything, you name it.
asserted
you → affect → it
David Jones was only bought by private equity firm Anchorage three years ago for $100 million.
asserted
Jones → buy → million
Documents from ASIC show under Anchorage, the business racked up losses of $74 million in the 2023–24 financial year followed by $62 million losses in 2024–25.
asserted
business → show → 2024–25
"[Anchorage] had a very clear plan on how to turn David Jones around and make it profitable, and clearly that doesn't seem to have panned out," Monash University law and insolvency expert Tamara Wilkinson said.
asserted
Wilkinson → have → Jones
The company did not lodge its latest financials on time to ASIC last week, in one of the clear signs that the retailer was really on its knees.
asserted
retailer → lodge → knees
Finer detail on how much is owed has not been made public, and a first creditors meeting is not set until next week.
asserted
meeting → owe → week
Some suppliers have told ABC News they are in the dark about next steps.
asserted
they → tell → steps
Dr Wilkinson warned that even a sale of the David Jones business might not claw back what was owed to creditors, including its 6,000 employees or suppliers.
uncertain
what → warn → employees
She explained that in an insolvency, if money could be clawed back, it was secured creditors — in this case, Hilco — that stood first in line.
uncertain
that → explain → line
They would be followed by employees who would receive their wages and super owed, and then suppliers or gift card holders.
asserted
who → follow → wages
That meant small businesses like Slowdown Studio and Beysis were at "the very bottom" of the pecking order, Dr Wilkinson said.
asserted
Wilkinson → mean → order
…and 12 more, not listed.
The Aporia
