Department store giant David Jones has plunged into the red, posting a $74.4 million loss for the year ending June 2024, according to the Australian Financial Review.

The figures, quietly filed with corporate regulators, reveal mounting pressure as private equity owner Anchorage Capital Partners scrambles to find financial support.

The loss marks a stark reversal from a $289 million profit recorded in the five months to July 2023.

Despite positive cash flow of $49.6 million, David Jones warned of potential funding shortfalls, partially addressed by a $190 million debt facility secured in October, mostly from distressed asset specialist Gordon Brothers.

Anchorage, which acquired David Jones from South Africa’s Woolworths Holdings in 2022, declined to clarify whether new funding, estimated at around $40 million, will come from this facility or elsewhere, the AFR said.

A spokesperson said the firm is working on a “new capital structure” to support David Jones’ transformation, citing investments in new technology and a recent partnership announcement with Qantas.

David Jones, Australia’s oldest department store, continues to fight retail challenges including increased online competition and the rise of standalone luxury brand stores.

CEO Scott Fyfe acknowledged the tough trading environment but remained cautiously optimistic, noting improved consumer sentiment in May following recent interest rate cuts.

Anchorage’s retail track record has raised eyebrows following the collapse of Scott’s Refrigerated Logistics, another Gordon Brothers-backed venture. Meanwhile, key Anchorage staff including Beau Dixon and COO Ben Ware recently departed.