Reports department store David Jones to sell before Christmas

Reports have emerged that a major Australian retail store is about to be sold before Christmas.

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.

David Jones may sell before Christmas. Picture: NCA NewsWire

It’s the store’s peak season with Christmas and Boxing Day sales around the corner. Picture: NCA NewsWire / David Crosling

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.

The department store is expected to sell for a fraction of what it was last purchased for. Picture: NCA NewsWire / Daniel Pockett

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 reported sales above pre-Covid levels earlier this year. Picture: NCA NewsWire / David Crosling

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

A David Jones spokesman declined to comment.