Billionaire eyes David Jones bid

By the Editorial Team · Monday, November 2, 2026

Larry Kestelman’s Brands Collective is evaluating a potential takeover of struggling department store David Jones amid mounting financial difficulties and the retailer’s uncertain future. If pursued, the bid could impact the luxury retail sector in Australia as David Jones faces possible receivership and ongoing challenges from shifting consumer habits and landlord pressures.

Billionaire Larry Kestelman’s retail company, Brands Collective, is reportedly considering a bid for David Jones as the department store’s future remains uncertain. Brands Collective, led by former David Jones chief executive David Thomas, is said to be assessing the opportunity amid concerns the luxury retailer may face collapse.

When approached for comment, Kestelman did not respond. However, industry sources indicate Brands Collective, which owns various fashion and footwear brands including Mossimo, Hush Puppies, Volley, and The Glue Store, may pursue a takeover if David Jones’ current financial challenges worsen.

The potential move comes with historical ties: Anchorage Capital Partners, which acquired David Jones in 2022 for about $100 million, had previously sold Brands Collective to Kestelman’s LK Capital in 2021 for an estimated sub-$100 million price. Kestelman’s business interests span multiple sectors, notably technology and property; he founded internet company Dodo and holds investments in the National Basketball League, along with previous stakes in Pas Group, an Australian fashion retailer acquired out of voluntary administration in 2020 by his LK Group. Brands Collective is considered synergistic with Pas Group’s portfolio, where roughly 70% of sales come from fashion and 30% from footwear.

David Thomas, who led David Jones in 2018 under Woolworths South Africa ownership, departed in 2019 following an internal inquiry into a discrimination complaint against him. Thomas denies any wrongdoing, and an independent investigation found no evidence supporting the allegations. Sources also noted that during his tenure, Thomas relocated David Jones’ headquarters from Sydney to Melbourne. Notably, former Woolworths South Africa executive Ian Moir had similarly attempted a buyout of Country Road Group, another prominent Australian retailer under Woolworths South Africa’s ownership, after leaving that business in 2020.

Reports prior to the weekend revealed that David Jones was being discreetly marketed to potential buyers, including billionaire retailer Brett Blundy. Despite efforts, David Jones faces mounting financial strain. Anchorage Capital Partners paid a fraction of the $2.2 billion Woolworths Holdings spent in 2014, reflecting the retailer’s decline. The company has contended with ongoing rent negotiations amid landlord resistance; some landlords reportedly preferred to replace the department store with more profitable tenants, leading to tense relations.

Insolvency advisors McGrathNicol and FTI Consulting are involved in managing the situation. Although financier Hilco offered an additional $10 million in funding, sources suggested this amount was insufficient compared to the roughly $200 million in loans available over three years, a projected $95.5 million loss in 2025, and EBITDA losses totaling around $176.5 million annually. Some industry observers believe David Jones may be days from entering receivership or administration.

The department store currently operates 38 stores nationwide but has struggled with delayed supplier payments, complicating its viability. Broader shifts in consumer behavior, favoring online shopping over traditional department stores, continue to pressure David Jones and similar retailers worldwide.

This article was reported by synthesizing coverage from multiple independent news outlets to present a balanced, unbiased account. Read about our editorial standards. Spotted an error? Let us know.