David Jones gets new owners just in time for Christmas

Fyfe, who will stay on as chief executive of the store, said Anchorage’s purchase is a vote of confidence for his vision for the business, which includes growing the retailer’s loyalty proposition and bringing a wider range of brands to shoppers, particularly online.

“It’s about premium and luxury. We’ll work closely with all the brand partners, continuing the great work my team have done from a physical and digital point of view.”

He said the core part of the business had been trading “exceptionally well” in the lead-up to Christmas, and that he was optimistic about the company’s future under Anchorage’s ownership.

He would not speculate on whether there would be downsizing of the company or job losses under the new ownership, but acknowledged there will be “change for the business” as part of the transaction.

“We need to stand this business as a standalone business. Inevitably, there is going to be change,” he said.

A spokesperson for Anchorage confirmed on Monday afternoon that the group had inked a deal with Cape Town-based Woolworths Holdings for the department store brand and said that Anchorage would work with Fyfe and his team to continue to “transform” the business.

“David Jones has a storied history, immense brand value and unparalleled assets,” they said.

Rumours of Woolworths Holdings’ plans to sell David Jones had been swirling since the middle of this year, with the South African retailer looking to exit the business having purchased it for $2.1 billion in 2014.

Industry sources had been tipping the value of the deal to sit between $120 million and $150 million, but neither company would confirm the figure on Monday.

Woolworths Holdings chief executive Roy Bagattini said there were a number of “moving parts” in the transaction and the company would confirm the exact value of the deal after it closes next year.

Woolworths’ investors will see further proceeds once the company sells the physical property housing its flagship Melbourne store in Bourke Street, which is separate to the Anchorage deal.

Regardless of the final price tag, Anchorage is snapping up the department store icon for a fraction of what Woolworths Holdings paid eight years ago.

Woolworths’ plans to overhaul the department store’s brand faced challenges over the years, and retail closures caused by the COVID-19 pandemic made matters worse during the last years of its ownership.

Bagattini told this masthead on Monday his team wanted to hand David Jones off to a partner that was committed to its growth after Woolworths had done the work to set the company on a stronger path.

“We’ve always maintained this was not necessarily a long-term fit for us as a group,” he said.

“Just a few short years ago we were in a very different position financially with the company… We had quite a lot of work to do to set it up.”

Anchorage said it will support the company’s existing growth strategy, which is called ‘Vision 2025’ and is focused on delivering a more seamless “omnichannel” experience where shoppers can move more easily between online and bricks-and-mortar retail.