OpinionAugust 10, 2026 — 3:59pmDavid Jones, billed as the house of brands, still feels like a house of cards.The war between David Jones and its suppliers has become so extreme that Accent Group, the owner of Platypus Shoes and Athlete’s Foot, threatened to exercise its default rights against David Jones after enduring months of overdue payments.David Jones has proposed to lengthen its payment times for suppliers.Oscar ColmanTypically, this “default right” would involve legal action or even a winding up order against David Jones – one that could trigger an avalanche from suppliers that have been waiting for payments.Faced with Accent’s hardball game, David Jones swerved and paid the group, which is now supplying only on a cash-on-delivery basis.It also emerged last week that David Jones was proposing to lengthen its payment times for suppliers, meaning for many a 20-week payment schedule.Under this plan, early payments would be small and regular with instalments ramp up each month. In theory most suppliers would receive what they are owed by November or even December.Most of the department store’s suppliers are still waiting for at least some of their money.Not all are equal, and the smaller suppliers are unlikely to get the same deal as the larger and more important ones. The former have less leverage, given David Jones is more important to their business than their business is to David Jones.Last week, this masthead also revealed that designer labels including Effie Kats, South Australian founded Acler, Significant Other and Aston Studios have left their contracts with David Jones to sign exclusively with Myer. R.M. Williams ended its relationship with David Jones nine months ago.The instalment schedule for suppliers does not support the view that David Jones is even close to financially robust. The department store declared in April that its business had turned the corner from the sustained losses of the previous years to post a profit in the nine months to March.Sincce then, consumer sentiment has fallen off a cliff, thanks to higher interest rates and fuel prices and a fall in house prices. The profits of discretionary retailers are under renewed strain.Myer has warned that retail conditions have deteriorated since May and the run-up to Christmas will be a discounting bonanza for shoppers – one that will eat into retailers’ profit margins.In June, David Jones replaced chief executive Scott Fyfe with Erica Berchtold and had found a new financier, Hilco Capital.Suppliers had hoped that the Hilco refinancing would result in immediate payment of amounts outstanding. Instead, they are still effectively bankrolling the department store.Berchtold characterised the payment plan as a reset, which would help to modernise and reinvigorate the business and put it on a stronger footing.Instead, she seems to be juggling thousands of supplier deals to avoid derailment, a process requiring significant athleticism on her part. She needs to ensure major suppliers are willing to provide summer stock to avoid empty shelves or the loss of previously exclusive suppliers.She cannot afford to deviate from the 20-week payment schedule, even if David Jones’ retail sales deteriorate.Suffice to say David Jones’s owner, Anchorage, will be holding its breath for this week’s interest rate decision for a steer on whether rates have peaked.There is a school of economists predicting rates won’t go higher while also tipping they won’t fall until next year. Another equally populated school says there is one more rate rise coming down the pike.David Jones’ suppliers, watching their bank accounts each week to see whether their payment lobs, will also be listening very closely to the call from the Reserve Bank.The Business Briefing newsletter delivers major stories, exclusive coverage and expert opinion. Sign up to get it every weekday morning.From our partners