latest Australian Financial Review reporting puts that dependence into sharper focus. Citing two people familiar with the matter, the publication reported that David Jones was “minutes from midnight” as its directors “ponder solvency”. In particular, it suggested David Jones had breached a loan covenant, leaving primary lender Hilco Global in a position to act. Instead, Hilco provided additional funding. “Hilco has funded above the agreed facility to allow David Jones to increase stock holdings ahead of the busy Christmas trade and sales period,” a company spokesperson said. The transformation before the reset Since Anchorage Capital Partners took ownership in 2023, David Jones has pursued an extensive modernisation program. Yet the financial backdrop remains difficult, with a $95.5 million pre-tax loss and sales down nearly 9 per cent. Although the retailer has also reported improved earnings over the first nine months of its last financial year, that progress has not removed questions about its financial resilience. The retreat in its physical footprint was already evident in December 2025. Responding to Inside Retail on December 18, David Jones confirmed Tuggerah would close on January 11 and Castle Towers on January 18, 2026. It described the decisions as part of “retail network optimisation”, encompassing refurbishment, right-sizing and consolidation. The explanation positioned closures as an adjustment to changing shopping habits, alongside investment in its online and in-store offering. By March, questions had shifted towards payments and the business’s longer-term position. David Jones told Inside Retail its $250 million transformation had been delivered “on time and within budget”, including store refurbishments, an app, e-commerce upgrades and a loyalty program. It also outlined changes to supplier payments through its Oracle finance system and updated standard payment terms, presenting these as measures to support efficiency and continued investment. Refinancing meets supplier pressure On June 22, David Jones announced that Erica Berchtold would replace Scott Fyfe as chief executive, effective immediately and that the company had secured a new three-year, asset-backed lending facility with Hilco. The facility, reported at about $220 million, had an unclear drawn balance. “The refinancing allows us to stabilise and reset the business with a strong focus on growing our strategic core and modernising our technology and digital platforms,” Berchtold said. By August, however, the AFR reported that Berchtold had asked some suppliers to accept a 20-week repayment program covering historical outstanding amounts and payments due during the period. Her explanation revealed the practical constraints behind the refinancing announcement. “Given the time of year, our proposal is shaped by the winter-driven low inventory levels, which impacts our options despite our recent successful refinancing,” she wrote. Supplier caution was also becoming more visible. Accent Group stopped supplying David Jones in July, and subsequently told the AFR it would supply only on cash-on-delivery terms. It had repaid its earlier $2 million exposure. Meanwhile, Effie Kats, Acler, Significant Other and Aston Studio moved to exclusive department store arrangements with Myer in August. These developments tightened supply conditions and weakened David Jones’ fashion proposition. Support, speculation and a narrower offer On September 24, the AFR reported Hilco had lined up McGrathNicol and Clifford Chance for early-stage insolvency preparations. David Jones responded, “Hilco is a lender to David Jones and continues to support the business.” That statement establishes the company’s position, but does not directly resolve whether contingency planning occurred. Nor does the reported covenant breach, by itself, establish that an insolvency appointment is imminent. In early October, Country Road Group announced plans to remove nearly 100 of its 283 concessions from next year. On October 7, David Jones told Inside Retail the portfolio review supported its “Inspire30” reset strategy: “It is our intention that our brand partners will maintain a presence across the network with a focus on the locations with the strongest potential for growth.”  Hilco’s additional funding buys room to trade – restoring supplier confidence and a compelling assortment remains the larger test.