Spike alert
Under controlDavid Jones in administration: what it means, and what we’re seeing
David Jones went into voluntary administration on 5 November, and its lenders called in receivers. What do they both mean?
The administrators are there to try to save the business or find a buyer. The receivers are sent in by the lenders to get their money back. David Jones stores and websites still stay open, but now anything you're owed as a customer is no longer guaranteed, like your gift card balance.
Here’s what we’ve seen. In the week of 2 to 8 November, four people came to Ajust about David Jones online orders: one stuck at a store for five days waiting to be sent, two paid for but missing from the customer’s account, and one that simply hadn’t arrived. It may be the turmoil behind the scenes, or the crush of orders: the receivers say sales are at “record levels” and that online orders are still being delivered.
Part of that crush is gift cards. Shoppers have rushed to spend them, and with good reason. New cards are off sale, and while existing cards still work, gift card holders count as unsecured creditors: if the business folds, they’re near the back of the queue to be paid. One retail expert warned that walking out of the store with a gift card in hand risks it being “dead money”.
What to do about it is in this week’s cheat code.
