Customers holding David Jones gift cards and loyalty points could find themselves out of pocket, with a leading retail expert urging shoppers to spend their vouchers as quickly as possible after Australia's oldest department store was placed into voluntary administration on Thursday.

The 188-year-old retailer, owned by private equity firm Anchorage Capital Partners, entered administration after talks with key stakeholders broke down. Administrators from McGrathNicol, specifically Jason Preston, Shaun Fraser, Jacinta Neilsen and Matthew Hutton, have been appointed to oversee the process, while FTI Consulting has taken on responsibility for the ongoing management and business reset.

For the full picture on what the administration means for shoppers and staff, see our earlier coverage on David Jones entering voluntary administration and what it means for shoppers and staff.

Use Your David Jones Gift Cards Now, Experts Warn

Retail expert Gary Mortimer told morning television viewers that one of the first things administrators typically examine is whether to continue honouring gift cards, and that loyalty programs, refunds, exchanges and returns could also be affected.

"If you're a little bit concerned, maybe head to the shops today and use those gift cards," Mortimer advised.

When asked whether customers should take a use-it-or-lose-it approach to valid vouchers, FTI Consulting did not directly address the question, referring instead to a recently released statement that makes no mention of gift card or loyalty program arrangements.

David Jones CEO Erica Berchtold has stated that a plan exists to return the company to profitability. "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. However, what that plan means specifically for gift cards and loyalty points remains unclear.

McGrathNicol confirmed that both physical stores and the online store will continue trading while operations are under review, and that the firm is "seeking offers for a recapitalisation of the business or a sale that will allow the business to continue operating into the future."

How David Jones Reached This Point

FTI Consulting senior managing director Christopher Hill pointed to a combination of pressures that brought the retailer to this juncture, including a challenging retail trading environment, rising costs, an outdated and oversized store network, and supply chain difficulties.

"Voluntary Administration and Receivership provides breathing space and an opportunity to restructure the business. We will manage this process carefully, mindful of the impact on some stakeholders but also recognising the need for difficult decisions," Hill said.

The company's financial strain was underscored by revelations that rent had not been paid since September, leaving David Jones in breach of its lease obligations. Scentre Group chief executive Elliott Rusanow confirmed the arrears and said a generous offer had been extended to Anchorage Capital Partners that would have allowed trading to continue, but that offer was rejected.

David Jones had paid $45 million in rent for the first nine months of 2026, up to 30 September. Its landlords hold $45 million in bank guarantees that could now be drawn upon to cover outstanding rent.

A Retail Institution With Deep Roots in Australian History

The collapse of David Jones, should it not be rescued, would mark the end of a retail institution dating back to 1838, when Welsh immigrant David Jones opened a small drapery on the corner of George and Barrack Streets in Sydney with a vision to sell "the best and most exclusive goods."

Over the following century the store expanded dramatically, evolving into a so-called "universal provider" and playing a significant role in Australia's retail and cultural life. Macquarie University retail historian Matthew Bailey noted that department stores like David Jones "dominated retailing in terms of market share and sales up until the middle of the 20th century" and were even central to Australia's early industrialisation through their own manufacturing operations.

It was Sir Charles Lloyd Jones, grandson of the founder, who arguably shaped the store's golden era. During his 38-year tenure as chair, he established the David Jones Art Gallery, oversaw fashion parades featuring designs from Pierre Balmain and Christian Dior, and hosted cultural exhibitions celebrating countries from Sweden to Britain. Even Queen Elizabeth II and Prince Philip dined at the store's Great Restaurant during a state visit.

University of New South Wales design historian Mark Ian Jones described the hallmarks of that era as "beautifully designed stores, beautiful products." For many Australians, a trip to David Jones was a cherished outing, complete with escalator rides, the toy section and a meal in the food hall.

"It's not something we do anymore so much," Dr Bailey reflected.

What Happens Next

The immediate focus for administrators is finding a buyer or investor willing to recapitalise and preserve the business as a going concern. Whether that rescue results in a slimmed-down store network, changed trading terms, or uncertainty for gift card holders, remains to be seen as the administration process unfolds.

For now, the expert advice to anyone holding a David Jones voucher is straightforward: do not wait.