Iconic Australian department store David Jones has been placed into voluntary administration by its directors, marking a significant event in the nation’s retail sector. The 188-year-old retailer failed to secure a new deal with landlord Scentre Group, leading to the decision. This development coincides with a stark warning from the National Australia Bank (NAB), which cautioned of an impending economic crunch as the risk from bad loans rises across its customer base.
NAB, Australia’s largest business bank, reported a sharp drop in its annual cash profit, attributing the decline to increasing stress among its customers. The bank highlighted growing financial pressures facing households and businesses, indicating a challenging economic outlook. Amid these corporate developments, the Australian Securities Exchange (ASX) saw a rally near noon, partially driven by a plunge in global oil prices below $US95 and a surge in the Dow Jones. However, NAB shares concurrently shed 7 per cent following its disappointing financial results.
Further corporate activity saw data centre group NextDC’s board engage bankers Barrenjoey and UBS as advisers, preparing for a potential takeover battle after its shares were raided by Goodman Group and its US partner. NextDC operates data centres, providing critical infrastructure for businesses’ digital operations and data storage. Meanwhile, oil and gas producer Woodside announced plans to cut over 500 jobs and nearly $600 million in annual costs starting from 2028, alongside reforming its dividend policy. Additionally, medical software start-up Heidi Health, which develops technology solutions for the healthcare sector, announced it would slash 18 per cent of its staff, just a day after two co-founders departed the company.
