David Jones is sold for a pitiful $100million

Iconic department store David Jones has been sold to Australian private equity firm Anchorage Capital Partners for just $100million. The company's South African-based owners Woolworths Holdings paid a staggering $2.1billion for the retail chain in 2014. The 184-year-old business, which has 43 stores and two distribution centres across Australia and New Zealand, had been expected to sell for about $130million. But the fire-sale deal was agreed after Woolworths Holdings was said to want out of Australia's department store industry because it did not foresee a return on its investment. David Jones has sold for just $100million to Sydney private equity firm Anchorage Capital Partners Model Megan Gale (right) gestures after officially opening Stage One of the David Jones Bourke Street Mall Store in 2009, during the chain's golden period. Sadly the chain was devastated by nightmare trading during Covid It is understood Woolworths and Anchorage exchanged contracts in Melbourne on Monday following a six-month process run by Goldman Sachs, the Anchorage beat a late bid by Teoh Capital, run by TPG Telecom's founder billionaire David Teoh, to secure the chain. David Jones' jewel, its flagship store in Melbourne's Bourke Street Mall - which is valued at about $250 million in its own right - is not understood to be included in the deal. But Woolworths is expected to sell the iconic store in the next year. Speculation mounted last week that Sydney-based Anchorage was on the verge of snapping up the once-mighty department store chain. Anchorage Capital Partners describes itself as a firm that 'invests in businesses operating below their full potential or undergoing a significant transformation'. Australia's first David Jones boutique store, at Barangaroo, closed in March 2020 due to Covid-19 and remained closed 18 months later. It opened in November 2016 (pictured) amid much fanfare David Jones, like many retailers, struggled amid lockdowns during the Covid pandemic and was forced to close some of its stores. Woolworths Holdings, which also owns Country Road, made over $1billion in write-downs due to losses across its businesses during the course of the Covid-19 pandemic and is understood to be focused on repaying its debts. As David Jones attempted to come out of the nightmare trading conditions, under Woolworths Holdings mis-steps were made. RELATED ARTICLES Previous 1 Next Iconic Aussie retailer David Jones could be sold to another... Inside the sad downfall of the once mighty David Jones as... Share this article Share The South African retail giant made expensive mistakes, including the decision to open and expand dozens of David Jones food halls, The Australian reported. Another was the punt it took on trying to make DJs-branded foods available in BP service stations. The gamble lost more than $15million in one year before it was all but shut down down in 2021. Woolworths Holdings chief executive Roy Bagattini said the move was flawed from the outset and a 'cut and paste' job from South Africa that didn't work in Australia. David Jones' decision to expanded its famous food courts did not repay the substantial investment The low-ball deal does not mean all is lost for David Jones. Current David Jones chief executive Scott Fyfe is set to stay on and fight for the revival of the chain. New owners Anchorage are said to have been impressed by Mr Fyfe's leadership team and indicated it will back them. Reinvestment in the stores is on the cards too, with equal focus on in-store and online shopping. Before the sale Mr Bagattini claimed the chain was in 'better shape than it had been in some time'.  Advertisement data-track-module="am-external-links^external-links"> Read more: Done deal: David Jones sold to PE investor Anchorage