The 186-year-old department store chain David Jones is reported to be set to undertake a $190 million refinancing deal.

Gilbert + Tobin partner Gail Christopher is running the transaction on behalf of Anchorage Capital Partners – which acquired David Jones in 2022 – and has secured Nomura and Gordon Brothers as lead lenders for the refinancing, according to the Australian Financial Review.

The $190 million loan had been structured as an asset-based lending facility that would see Soul Patts and Hilco exit David Jones’ debt stack.

The deal is expected to close as early as this week, and comes nearly two years after Anchorage’s dealmakers agreed to buy the chain from South Africa’s Woolworths for $92.5 million – or a 75 per cent discount to the book value. Woolworths had paid $2.1 billion to buy the chain in 2014.

 

Scott Fyfe has remained as the CEO of David Jones since 2020.

The upmarket department store is investing more than $250 million into the business over the coming years, including about $100 million into stores to ensure that by 2027 more than 42 per cent of its store footprint (stretching across 40 outlets) will be refurbished. Also, $75 million will be invested into its digital channels. The retailer will release its new mobile shopping app next month.

While consumer spending hasn’t been particularly enthusiastic over the last few months, and some retailers are predicting a bleak holiday shopping period this year. However, Fyfe has held that many Australians were now adapting to living with the cost of living pressures, and were prepared to spend up for the Spring racing carnival as well as Christmas.

“This time last year was definitely a time for shoppers controlling their purse strings. They were buying a shirt rather than buying a complete outfit. We think this year that people now are living with the cost of living pressures so we look forward to them buying complete outfits from us,” said Fyfe.