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  • Tue. Nov 5th, 2024

Myer and David Jones creditors lose insurance on administration fears

Myer and David Jones creditors lose insurance on administration fears

They were once the giants of Australian retail. The only places to shop. Everything you wanted, all under the one roof.

Key points:

  • QBE is Australia’s largest provider of trade credit insurance, and it will no longer cover contracts with Myer and David Jones
  • This is because the risk of the big department stores defaulting on their debts to creditors is judged to have become too high
  • Both department stores reject the risk of default, but analysts say voluntary administration remains a real option for both as they struggle to survive COVID-19

But for Myer and David Jones, the rise of specialty stores coupled with the invasion of the internet has triggered a dramatic fall from grace.

Now, both are struggling to stay alive, and COVID-19 has made their perilous situations worse.

Sales at Myer are lower today than they were 10 years ago; DJ’s sales are up in that decade, but only by 8 per cent.

Myer’s curr

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