David Jones is in administration. What happens to your gift cards and rewards?
Key takeaways
- David Jones has entered voluntary administration and receivership just 7 weeks before Christmas, with some store closures expected.
- The retailer's 38 Australian and New Zealand stores will continue trading while administrators and receivers assess options, including a sale or restructure.
- What next: Here's what to do if you have David Jones rewards points, gift cards or outstanding purchases.
If you've got a David Jones gift card sitting in your wallet, it's time to get spending.
After announcing its gone into voluntary administration, the 188-year-old retailer is still open – for now.
But the future of its 38 stores is uncertain.
As a David Jones customer, here's what you need to know.
David Jones TLDR
- Gift card? Use it as soon as possible.
- Reward points? Consider redeeming them soon while the program is operating.
- Planning to refund or return something? Get onto it sooner rather than later.
- David Jones credit card holder? Existing cards and points are continuing to operate, according to Latitude. New applications have stopped.
Here's what to do if…
🎁 You have a David Jones gift card
"If the business doesn't find a buyer, that gift card will almost certainly be worthless. So if you've got a David Jones gift card, use it as soon as you can," says Finder shopping expert, Angus Kidman.
Gift card holders are generally treated as unsecured creditors, meaning they sit behind secured creditors and other priority claims if there isn't enough money left to repay everyone.
Finder research shows the typical Australian is holding onto $242 in gift cards, so this is a good reminder to get spending on any vouchers and cards and "get the value while you still can," Angus says.
Gift cards can currently be used in stores and online. But that could change if administrators impose new conditions on gift card use.
✨ You have David Jones Rewards points
The same advice applies.
Administrators will need to determine how the loyalty program is treated, so if you've got points you're able to redeem, consider using them sooner rather than later.
If you earn Qantas Points through the David Jones Rewards program, check whether they've already been credited to your Qantas Frequent Flyer account. Points already credited to Qantas are held separately from your David Jones Rewards balance.
💳 You have the David Jones credit card
New applications for David Jones credit cards have been stopped by the issuer, Latitude Financial Services.
Existing cardholders of the David Jones Prestige card or the David Jones Premiere Credit Card can continue using their cards, earning points and redeeming rewards, according to Latitude.
Any reward points earned through your David Jones credit cards are managed by Latitude, which is separate from the retailer's own David Jones Rewards loyalty program.
Thinking of switching credit cards? Check out some of the best rewards credit cards in the market
🛍️ You have something to refund or return to David Jones
"If you're shopping at David Jones right now, your usual consumer rights still apply," Angus says.
"But if you're buying Christmas presents there, keep in mind the store may not be around in January if someone wants to swap it or get a refund."
David Jones accepts eligible change-of-mind returns within 30 days, and your rights for faulty or misrepresented goods are protected under Australian Consumer Law. You may also be able to seek a remedy from the manufacturer if David Jones stops trading.
The same goes for an online order you've paid for but haven't received. If the purchase doesn't arrive and you've paid by card, you could contact your card provider about a potential chargeback.
What about David Jones employees?
David Jones employs around 6,000 people. Staff were expecting to enter their busiest time of the year with Black Friday and Christmas approaching, but now may face the prospect of fewer shifts or losing their jobs.
Some of its 38 stores are expected to close as part of the administration process, but there has been no confirmation about which locations will shut, when they will close or how many jobs are at risk.
For now, stores will continue trading and employees have been told to continue working as normal.
CEO Erica Berchtold said in a statement: "We have a well-developed plan on how to reset the business for the future and will be working with the Administrators, the Receivers and our secured lender as we continue to pursue that reset of the business."
Employees should avoid resigning simply because the company has entered administration, as this could affect their entitlements. Contact the Fair Work Ombudsman or your union if you're unsure about your workplace rights.
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