The prospect of David Jones falling into new possession has as soon as once more been raised after the boss of its mother or father firm informed traders administration was exploring all choices for the way forward for the enterprise.
Chief govt of South African retailer Woolworths Holdings, Roy Bagattini, stated within the firm’s annual report that DJs was now in “higher form than it had been in a while”, paving the best way for Woolworths to contemplate how greatest to return worth from David Jones again to its shareholders.
“David Jones is now debt free, self-funding, and has a transparent roadmap to bettering profitability,” he stated.
“We’re in a beneficial place to discover all future choices in respect of this enterprise, and the way greatest to additional unlock worth for the Group and our shareholders.”
Hypothesis concerning the sale of David Jones kicked off after the corporate’s full yr monetary ends in September, and raised the chance that the nation’s division retailer market might endure vital consolidation.
It additionally reignited the prospect of David Jones and its rival Myer being owned by one entity, since any non-public fairness curiosity in David Jones is also tempted to snap up Myer.
Bagattini additionally informed his traders that there could be no extra capital flowing from its South African enterprise to assist David Jones, noting the corporate had “repatriated” 1 billion rand ($86.2 million) from David Jones in the course of the yr.
Woolworths’ possession of David Jones Group consists of the malls and the attire manufacturers underneath the Nation Street Group banner, together with Nation Street, Witchery and Trenery.