David Jones entered voluntary administration this week after emergency talks between its owner, Anchorage Capital, and its lenders and landlords unravelled. The retailer had fallen behind on rent.
Retail analysts see one viable route: a retreat to a tight network of premium stores in prime locations. Brian Walker of Retail Doctor Group estimates that a surviving David Jones might operate 12 to 15 branches within five years, a fraction of the current footprint, and suggests a smaller, reimagined business could be profitable.
The obstacle is the process itself. Administration sets lenders, landlords, suppliers and the receiver against one another, and the outcome is decided by whichever party can absorb the most loss rather than by whichever plan is soundest.
Department stores worldwide have spent a decade losing ground to online purchasing and to brands that prefer their own shopfronts. David Jones was supposed to be insulated by price and prestige. It turns out those two things were never the same asset.
The receivers will trade the business through the holiday period if they can. What survives into next year will be smaller, and it will have to decide what it is for.
