Key Takeaways
- • Anchorage Capital Partners placed David Jones into administration in the week of the article, after acquiring the department store business in 2023 for less than $100 million, according to the Brisbane Times report.
- • Anchorage's spokesman says the firm invested capital, charged no fees, took no dividends, and reinvested all available cash ($150 million) into David Jones, which also secured an additional $74 million investment last year.
- • Anchorage, founded in 2007 with a 15-person core team, has managed more than $1.5 billion across four funds and co-investments, and reports a 36 per cent internal rate of return over 20 years with 2.6 times invested money returned.
- • The administration process is expected to let David Jones exit expensive leases for unprofitable stores, which Anchorage says cost 40 per cent of turnover, and clear debts before a sale or return under a new owner.
- • Critics continue to cite Anchorage's history with Dick Smith Electronics, which a 2012 Forager analysis said was bought for about $10 million and listed at a $520 million valuation in 2013 before collapsing in 2016; Anchorage says it was fully exonerated after an ASIC investigation.
Summary
Anchorage Capital Partners, the Australian private equity firm that acquired David Jones in 2023, has placed the department store into administration, a decision the Brisbane Times describes as a test of the firm's controversial turnaround playbook. The firm's critics, including Dick Smith, 82, view Anchorage's ownership through the lens of its earlier Dick Smith Electronics transaction, which a 2012 analysis from funds manager Forager said Anchorage bought for about $10 million in cash, then listed at a $520 million valuation in 2013. That chain collapsed in 2016. Smith told the publication he feared a repeat of the "equity heist" when Anchorage became involved with David Jones.
Anchorage, founded in 2007 by bankers including executive chair Phil Cave, runs a lean team of 15 people and has managed more than $1.5 billion across four funds and co-investments. In a detailed statement, a spokesman said Anchorage "did not strip value from David Jones," citing $18 million more investment in stores than Myer over the last two years of ownership despite 18 fewer locations, upgrades to the loyalty program, website and fitouts, no director fees, and an additional $74 million investment last year. The spokesman said all available cash of $150 million was reinvested and no dividends were taken. The firm also said its investors have achieved a 36 per cent internal rate of return over 20 years and 2.6 times invested money back, placing it in the top quartile of comparable funds.
The administration is expected to allow David Jones to shed leases on unprofitable stores, which Anchorage says cost it 40 per cent of turnover, and to clear debts. According to an anonymous senior insolvency partner familiar with Anchorage's work, the firm worked on the process with Hilco, the retail lender of last resort that had been backing David Jones. The partner described Anchorage as shrewd operators and said the process is a legitimate rescue tool, though acknowledged the Dick Smith history would weigh on the firm.
Anchorage's track record is mixed. Its Brand Collective business, which it built up in 2014 and 2015 and sold in 2021 to Larry Kestelman's family office, has continued to grow, and Kestelman has been reported as a potential David Jones buyer; his representatives did not respond to a request for comment. Its Burger King New Zealand franchise was sold to Blackstone in 2011 and later went into administration. Affinity Education, sold in 2021 to Quadrant Private Equity, drew negative headlines in 2025 related to the childcare sector's child safety scandal, which occurred after Anchorage's exit. Anchorage says it exited Dick Smith well before its later difficulties and was fully exonerated following an ASIC investigation and related class actions.
Anchorage, founded in 2007 by bankers including executive chair Phil Cave, runs a lean team of 15 people and has managed more than $1.5 billion across four funds and co-investments. In a detailed statement, a spokesman said Anchorage "did not strip value from David Jones," citing $18 million more investment in stores than Myer over the last two years of ownership despite 18 fewer locations, upgrades to the loyalty program, website and fitouts, no director fees, and an additional $74 million investment last year. The spokesman said all available cash of $150 million was reinvested and no dividends were taken. The firm also said its investors have achieved a 36 per cent internal rate of return over 20 years and 2.6 times invested money back, placing it in the top quartile of comparable funds.
The administration is expected to allow David Jones to shed leases on unprofitable stores, which Anchorage says cost it 40 per cent of turnover, and to clear debts. According to an anonymous senior insolvency partner familiar with Anchorage's work, the firm worked on the process with Hilco, the retail lender of last resort that had been backing David Jones. The partner described Anchorage as shrewd operators and said the process is a legitimate rescue tool, though acknowledged the Dick Smith history would weigh on the firm.
Anchorage's track record is mixed. Its Brand Collective business, which it built up in 2014 and 2015 and sold in 2021 to Larry Kestelman's family office, has continued to grow, and Kestelman has been reported as a potential David Jones buyer; his representatives did not respond to a request for comment. Its Burger King New Zealand franchise was sold to Blackstone in 2011 and later went into administration. Affinity Education, sold in 2021 to Quadrant Private Equity, drew negative headlines in 2025 related to the childcare sector's child safety scandal, which occurred after Anchorage's exit. Anchorage says it exited Dick Smith well before its later difficulties and was fully exonerated following an ASIC investigation and related class actions.
Go deeper than the headline
Research every firm in this story, track the ones that matter and get the daily briefing — free for 7 days.