David Jones wrongly believed it could be exclusive and everywhere. Can the 188-year-old institution keep the lights on for Christmas?

David Jones wrongly believed it could be exclusive and everywhere. Can the 188-year-old institution keep the lights on for Christmas? The arbiter of Australian taste abandoned prestige to chase profits through expansion. Now 6,000 staff across 38 stores fear job cuts as ‘difficult decisions’ loom

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I cut past the glow of the Louis Vuitton displays and sidestep Armani, Hermès and Prada, all while being hit by the mingling fragrances on the ground level at David Jones .

A series of escalators at the heart of its flagship Sydney store carries me to the menswear department, where I’m greeted by Ralph Lauren and Tommy Hilfiger.

I see signs promoting a price match, a concession made after David Jones followed mass-market retailers into the suburbs and began stocking the same products shoppers can find elsewhere.

The arbiter of Australian taste abandoned prestige for size, after wrongly believing it could be both exclusive and everywhere.

Now the 188-year-old has collapsed into administration after it fell behind on rent, and emergency talks between the David Jones owner, Anchorage Capital, and lenders and landlords unravelled.

The receivers FTI Consulting, which has taken over operational control as the business gets prepped for sale, has issued an ominous warning that “difficult decisions” must be made.

About 6,000 staff spread across a network of 38 stores face uncertain job prospects, not knowing how long the department store will be able to keep its doors open and Christmas light displays on.

Some of the most unprofitable stores – typically in outer suburban and regional locations – are at risk of imminent closure.

The way back, according to retail experts, is a radical retreat to a tight network of premium stores in prime locations, which would involve cutting the number of stores.

While that reimagined footprint could save the business, it will hinge on an uncertain administration process whereby different stakeholders vie to protect their interests.

“If it survives this, in five years or so, it wouldn’t surprise me to see 12 to 15 David Jones stores,” says Retail Doctor Group’s chief executive, Brian Walker.

Many retailers have been through a torrid decade, with online buying habits ushered in by Amazon proving to be an existential threat to department stores around the world.