David Jones’ South African Shareholder Says The Store Was A Poor Investment, Supports Plans To Shut Shop

David Jones’ South African Shareholder Says The Store Was A Poor Investment, Supports Plans To Shut Shop

The majority shareholder in the parent company of David Jones has called its $2.1b acquisition of the retail giant a poor investment while supporting its plan to shut its stores.

Last week B&T reported David Jones sales in its stores had fallen 35.8 per cent across March and April, with the company closing and selling some of its 48 locations around the country to reduce the debt pile.

And now, ivestment management company Allan Gray, which last month piled up 20 per cent of South African-based Woolworths Holdings, told The Sydney Morning Herald: “Woolworths paid $2.1 billion for David Jones which has turned out to be a very poor acquisition given the pressure department stores find themselves under globally and the tough Australian economy,” Allan Gray portfolio manager and director Duncan Artus said.

“Most of the value is in the South African operations, including an excellent food business, and Country Road, which operates in both Australia and South Africa.”

David Jones’ South African-based parent company Woolworths Holdings alerted investors of the upcoming changes two weeks ago.

“COVID-19 has had a significant impact on (customer) foot traffic and store sales,” the company said.

“We expect the challenging and fluid operating environment brought about by the pandemic, to continue for the foreseeable future.

“In these unprecedented times, the Board and management team will continue to act swiftly and decisively to protect the Group’s financial position.”

The group has now brought on investment bank UBS to review a restructure as the company attempts to reduce around $500m in debt owed by David Jones and Country Road Group.

 

 




Please login with linkedin to comment

David Jones

Latest News

Image lead story Domain CMO Rebecca Darley: Tealium’s CDP Allowed Us To Personalise At Scale
  • Partner Content
  • Technology

Domain CMO Rebecca Darley: Tealium’s CDP Allowed Us To Personalise At Scale

Domain’s chief marketing officer (CMO), Rebecca Darley, said that without Tealium’s customer data platform (CDP), her business would not have been able to achieve the personalised marketing success that has made it one of the leaders in data-driven marketing in Australia. Speaking at an exclusive breakfast event hosted by B&T at Sydney’s swish harbourside restaurant, […]

Partner Content

by B&T Magazine

B&T Magazine
Man of Many Partners With NBC Universal For Red Carpet ‘Argylle’ Premiere
  • Campaigns

Man of Many Partners With NBC Universal For Red Carpet ‘Argylle’ Premiere

Man of Many in partnership with NBC Universal, stages an atmosphere of elegance for Sydney premiere of ‘Argylle’ film. Independent lifestyle publication digital publication, Man of Many, has shown its innovative approach to event management in the premiere of ‘Argylle’ at Hoyts Cinema in Sydney’s entertainment quatre. Over 400 guests were included in the films […]