Westfield owner Scentre Group has revealed David Jones pays well below the portfolio average in rent amid widespread reports the historic retailer is preparing to axe more than half its stores.

David Jones is likely to appoint administrators in the coming days after negotiations with its landlords broke down, according to the Australian Financial Review. David Jones and owner Anchorage Capital Partners have not responded to The Nightly’s request for comments.

David Jones has 17 of its 38 stores located within Westfield shopping centres. Vicinity Centres has four stores, while GPT has three.

In a trading update provided to the market on Wednesday, Scentre said David Jones paid about a third of its portfolio’s average rent and it held guarantees worth eight months of rent.

Scentre’s share of gross rent from those 17 stores in 2026 was $45 million, which equalled to $352 per square metre, compared with an average of $942 per square metre across all stores in the portfolio.

“David Jones has provided $45m in bank guarantees for its stores across the Westfield Australia/New Zealand portfolio, of which (Scentre Group’s) share is approximately $30m, equivalent to eight months gross rent. These guarantees can be applied against any unpaid rent,” Scentre said.

Scentre said the bank guarantees were put in place as a condition of its approval of Anchorage Capital Partners’ acquisition of David Jones in 2023.

David Jones has paid all rent up to September 30, Scentre said.

The 188-year-old department store is fighting for survival as it races to get substantial rental assistance from landlords — including a rent-free December, its busiest trading month — and shrink its store network.

David Jones operates 38 stores around Australia and it’s understood it wants to slash that number to between 12 and 20 as it enters negotiations with landlords.

Reports have identified loss-making Westfield stores under immediate review, including Carousel in Perth, Parramatta and Hornsby in Sydney, Woden in Canberra and Southland in Melbourne.

Scentre had previously told investors it could earn more from space surrendered by department stores.

The former David Jones space at Burwood in NSW went to Aldi, an expanded JB Hi-Fi, Nike and Rebel, while its Bondi food hall made way for a Virgin Active gym and a Rebel concept store.

At Scentre’s annual meeting in April, chief executive Elliott Rusanow said older David Jones and Myer leases produced “far less rent per square metre” than replacement tenants who also increased foot traffic.