David Jones chief David Thomas quits, citing ‘personal reasons’

David Jones boss David Thomas has quit after the company launched an ­investigation into a discrimination complaint.

The boss of David Jones, David Thomas, has quit. Picture: Richard Dobson

David Jones boss David Thomas has left his job after the department store chain launched an ­investigation into a discrimination complaint against the former chief executive.

It is understood the complaint was made by one of Mr Thomas’s staff, as reported online by The Australian yesterday.

The department store has now had four chief executives in five years, including Paul Zahra, a long-serving chief executive who had been at the company for 14 years, Ian Nairn and John Dixon. In 2010, the then-chief executive, Mark McInnes, resigned amid sexual harassment allegations. He was replaced by Mr Zahra.

Mr Thomas was appointed chief executive in 2018 and the company announced yesterday that he was leaving for “personal reasons” after an internal memo was sent to staff.

However, the department store received a complaint in ­November following an allegation of discrimination. David Jones launched an investigation into the complaint. It is understood the staff member who made the complaint had engaged Harmers Workplace Lawyers.

“David Jones confirms that it received a complaint of discrimination against its CEO, David Thomas, in November last year,” a David Jones spokesman told The Australian yesterday.

“Immediately following the complaint, an external legal firm was appointed by David Jones to conduct an investigation into the matter. No evidence was found to support the claim.

“David Jones does not tolerate discrimination in any form and is focused on fostering an inclusive culture and workplace for its team that does not differentiate based on race, ­religion, gender or sexual orientation.”

South Africa’s Woolworths Holdings purchased David Jones in 2014 for $2.2 billion, but since the acquisition the company has been hit by major headwinds due to disruption to retailers by online shopping.

Department stores globally have endured falling sales, and in Australia rival Myer has faced disappointing results, recently hiring a new chief executive, John King, to turn around the business.

Its sales fell 3.2 per cent for its 2018 financial year, resulting in a $486 million loss, and its share price has crashed from more than $2 five years ago to less than 50c.

Woolworths made a $712.5m writedown on its David Jones ­investment a year ago, but sales rose 1 per cent for the half year to December.

However, David Jones said that sales performance had weakened in line with the rest of the ­retail market in the final weeks leading up to Christmas.

Comparable-store sales rose 0.9 per cent, with growth from new stores largely offset by sales disruption from the Elizabeth Street, Sydney store refurbishment, Woolworths had earlier told the market. The company said it was planning further net space reductions to improve the productivity of the store portfolio.

Online sales have grown by 46.1 per cent and now contribute 7.7 per cent of total sales.

Mr Thomas had been the chief executive of the Australian retailer since taking over from John Dixon when Mr Dixon departed last year. He was previously chief operating offer at David Jones and also worked as the chief operating officer at Country Road. Woolworths boss Ian Moir will now take charge of David Jones.

Mr Thomas’s departure comes as the company faces cost blowouts on the refurbishment of its Elizabeth Street store in Sydney and flat trading results.

However, David Jones said in a statement that Mr Thomas had left for “personal reasons” and that a replacement chief executive would be announced in due course.