DAVID JONES COLLAPSE: WHAT IT MEANS FOR YOUR GIFT CARDS AND CHRISTMAS SHOPPING
It is the news that has rattled shoppers right across the country, as David Jones, the department store that has been part of Australian life for 188 years, has collapsed.
The much-loved retailer entered voluntary administration and receivership on Thursday 5 November, after talks with its landlords and owners broke down, ABC News reports.
Accounting firm McGrathNicol has been appointed as administrator, while FTI Consulting has been appointed as receiver by the secured lender, Hilco Capital.
The good news for now is that the doors are still open, with both its stores and online shop continuing to trade while the business is reviewed.
What happens to David Jones gift cards?
If you have a gift card from a birthday or last Christmas, consumer experts say now is the time to use it.
Erin Turner, chief executive of the Consumer Policy Research Centre, put it simply to the ABC: "If you have a gift card, go now."
She explained that if the business is wound up, gift card holders could become unsecured creditors and may lose their money.
Turner told SBS News that people in that position could be left waiting months or even years for any refund.
She pointed to the collapse of Dick Smith in 2016, when customers were left with gift vouchers and deposits that were not honoured.
QUT retail expert Gary Mortimer added that receivers will decide how gift cards are treated, and new conditions could apply.
He noted that when Barbeques Galore collapsed, gift cards were only honoured if customers made an extra purchase.
According to Finder, the typical Australian holds $242 in gift cards, so it is worth checking your purse and drawers.
Shoppers rush to spend
The ABC reported that customers were already hurrying into stores on Thursday to spend their cards.
At the Highpoint store in Melbourne's west, shelves were partly empty and staff were clearing other stock.
One shopper said she was finally spending a $300 gift card she had been holding on to for a year.
Rewards points, layby and credit cards
Turner also suggested using any David Jones Rewards points sooner rather than later.
She warned that accrued loyalty points and layby items may not be honoured, and advised against buying new gift cards or starting a layby until the retailer's future is clearer.
Finder notes that Qantas Points already credited to your Qantas Frequent Flyer account are held separately from your David Jones Rewards balance.
Card provider Latitude has stopped taking new applications for David Jones credit cards, but says existing cardholders can keep using their cards and earning points.
What about returns and online orders?
Finder reports that David Jones accepts eligible change-of-mind returns within 30 days, so do not leave it too long if something does not fit.
Your rights for faulty or misrepresented goods are protected under Australian Consumer Law, and you may also be able to seek a remedy from the manufacturer.
Finder shopping expert Angus Kidman warned that the store "may not be around in January" if a gift needs swapping.
Turner suggested shopping in store rather than online for now, as online orders could face delays or problems.
If an online order paid by card never arrives, you could contact your card provider about a chargeback.
Will there be bargains?
Many shoppers are wondering if huge clearance sales are on the way.
Mortimer told SBS he does not expect heavy discounting, because many products in David Jones stores are sold through concessions owned by the brands themselves.
He suggested stock from any closing stores may simply be moved to other locations.
A smart checklist for this weekend
Gather up any David Jones gift cards in the house and plan a shopping trip to use them.
Redeem any rewards points while you can.
Hold off on buying new gift cards for Christmas, and consider another retailer for presents you plan to give.
Keep receipts handy and act quickly on any returns.
You can check the latest trading updates on the David Jones website.
With Christmas just around the corner, a little action now could save a lot of disappointment later.
