David Jones is feeling the pinch of COVID-19, with the retail giant revealing sales in its stores had fallen 35.8 per cent across March and April.
The company will now be closing and selling some of its 48 locations around the country to reduce the debt pile.
David Jones’ South African-based parent company Woolworths Holdings alerted investors of the upcoming changes on Wednesday afternoon.
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,” the company said.
“In these unprecedented times, the Board and management team will continue to act swiftly and decisively to protect the Group’s financial position.”
The decision to close Country Road – also owned by Woolworth Holdings – has also contributed to the financial hurt.
The group has brought on the help of UBS to review a restructure, as the company looks to clear around $500 million in debt owed by David Jones and Country Road Group.
