The boards of David Jones and owner Anchorage Capital Partners will place the group into voluntary administration on Thursday after talks broke down.
An official statement confirming the appointment of McGrathNicol is expected to be released shortly.
Westfield owner Scentre Group is David Jones' biggest landlord with 17 of the retailers' remaining 38 stores in the shopping centre giant's malls.
Rent had not been paid since September, leaving the retailer in breach, Scentre Group chief executive Elliott Rusanow said on Wednesday.
The company had paid $45 million in rent for the first nine months of the year, up to September 30.
David Jones' landlords have $45 million in bank guarantees for its stores that could be used to pay rent.
Anchorage Capital paid $100 million to buy the retailer in 2023, a fraction of what its previous owner paid for the department store chain nine years earlier.
South Africa-based Woolworths Holdings shelled out $2.1 billion to acquire the then-stock exchange-listed group in 2014.
David Jones' larger Australian rival, Myer, announced in September that it lost $276 million in 2026 financial year, its second-worst year in more than a century of operations.
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