David Jones sale: Anchorage Capital to buy department store

Home Economy David Jones sale: Anchorage Capital to buy department store
David Jones sale: Anchorage Capital to buy department store

Rumours are swirling that department store giant David Jones will change ownership before Christmas.

The Australian Financial Review has reported that private equity firm Anchorage Capital is expected to buy David Jones from South African parent company Woolworths Holdings.

The company bought the business eight years ago for $2.1bn.

The department store is speculated to sell for a fraction of what it sold for a decade ago – between $120m and $150m – according to the AFR.

Interestingly, the deal is not expected to include the department store’s flagship store on Melbourne’s Bourke St.

Woolworths Holdings issued a trading update on November 16 that showed David Jones had been delivering sales above pre-Covid levels.

“Trade in the prior period was impacted by the extended lockdowns, resulting in relatively higher growth rates in the current period compared to the prior period,” the company said at the time.

David Jones’ turnover and concession sales increased by 55.3 per cent for the period.

A David Jones spokesman declined to comment.

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