Attributed to economic headwinds.
Woolworths Holdings, parent company of David Jones, has recorded an impairment charge of $437.4 million for the department store for the period end 30 June, 2019. The write-down slashes the valuation of David Jones to $965 million.
In a company statement, Woolworths said: “The impairment reflects the economic headwinds and the accelerating structural changes affecting the Australian retail sector as well as the performance of the business, which has fallen short of expectations. The Woolworths Holdings board believes the valuation of David Jones is realistic and reflective of its prospects.
“A strategic review of the David Jones store portfolio has also identified stores with onerous leases resulting in an additional provision of $22.4 million at period end.”
The write-down follows the recent announcement of 120 David Jones employees being made redundant.