The 188-year-old iconic retailer's physical and online stores will continue to trade under the control of the receivers while its operations are reviewed.
The closure of some of its 37 stores in Australia and one in Auckland, is likely to be on the table ahead of the all-important holiday trading season.
"We have a well-developed plan on how to reset the business for the future and will be working with the administrators, the receivers and our secured lender as we continue to pursue that reset of the business," chief executive Erica Berchtold said in a statement.
In the meantime, voluntary administration and receivership provide breathing space and an opportunity to restructure the business, FTI Consulting senior managing director Christopher Hill said.
Mr Hill is one of three FTI executives appointed as receivers and managers to David Jones.
"We understand the current retail trading environment, rising costs, a significant and outdated retail footprint, and supply chain challenges have led to this point," he added.
"We will manage this process carefully, mindful of the impact on some stakeholders but also recognising the need for difficult decisions."
Voluntary administrators McGrathNicol will immediately seek offers for a recapitalisation of David Jones, or its sale as a going concern.
The high-end chain has been struggling in recent years, like many department stores worldwide, in the face of changing consumer behaviour and the rise of ultra-cheap online shopping and buzzy specialty retailers like Mecca.
South Africa-based Woolworths Holdings shelled out $2.1 billion to acquire the then-stock exchange-listed group in 2014, before selling it in 2023 to a Sydney-based private equity group for just $100 million.
Despite its efforts, Anchorage Capital has been unable to turn it around.
David Jones posted a $95.5 million loss for 2024/25, which was worse than the $74 million loss for 2023/24.
It's yet to file its results for 2025/26, after missing an October deadline.
David Jones is also behind on rent to its biggest landlord, Westfield owner Scentre Group, which hosts 17 of its stores in its shopping centres.
Rent had not been paid since September, leaving the retailer in breach, Scentre Group chief executive Elliott Rusanow warned on Wednesday.
The retailer had paid $45 million in rent for the first nine months of the year, up to September 30.
Three years ago, Scentre Group insisted Anchorage post $45 million in bank guarantees for rent, given the retailer's financial struggles.
Scentre Group's share of that guarantee is $30 million, enough to cover about eight months of gross rent.
David Jones' larger Australian rival, Myer, lost $276 million in 2026, which was its second-worst year in more than a century of operations.
Janet Saunders has been shopping at David Jones since she was about 10, when she first visited the department store with her mother.Now 73, she and husband Wayne, also 73, say the prospect of its closure would mark a sad loss for generations of Melbourne shoppers."I do like shopping and I'd be very sad if they were to close," she told AAP."It would be terrible for Bourke Street mall."The country couple still make trips into Melbourne for special occasions, with David Jones a regular stop for clothing and Christmas shopping.Ms Saunders prefers rival department store Myer, but she has grown attached to certain brands only offered at David Jones.The good news, she said, was she didn't have any outstanding gift cards or purchases on deposit."Who knows whether they'll be any good."
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