David Jones’ flagship Perth store in Hay Street Mall is one of three in the city to close as administrators work to keep the 188-year-old retailer alive.

The CBD store, as well as Garden City and Carousel, will be closed, with hundreds of jobs to be axed, receivers FTI Consulting said on Wednesday.

They are among a list of 19 of David Jones’ 38 stores set to be shuttered.

While there is no final date for the closures, FTI anticipates all affected stores will stop trading by the end of the year.

FTI said it had made the “difficult decision to proceed with an urgent restructure of the business”, in line with the plan put forward before David Jones collapsed into administration and receivership last Thursday.

“As part of this restructure, the receivers have commenced an immediate consultation process for all staff associated with 19 stores that have been identified for closure,” the receivers said.

“For the immediate term these stores will continue trading, and while there is no final date for the closures, we anticipate they will cease trading by the end of the year.

“David Jones staff have been informed today, with the consultation period continuing over the next seven days.”

A David Jones sales assistant in Perth told The West Australian she found out about the closure through workplace app Yoobic.

“The staff working in my store today were not informed by store management,” she said.

“Many people were very upset and angry. My colleague told me all managers in our store had been in meetings all morning — so not even on the selling floor to support staff.

“Safe to say we are all very, very disappointed with the lack of respect for staff in allowing us to find out this way.”

In a memo to staff, seen by The West, David Jones chief executive Erica Berchtold said the business could not continue operating as it was.

“We had a plan to reset the business, and we still have a plan to reset the business,” she said.

“Put simply, our store portfolio is no longer the right shape for the business, and this change is about creating a network that is financially sustainable for the future.”

Ms Berchtold said administrators had commenced a consultation period with affected staff and were “working through what this means for their employment”.

“I know how much our stores and the people in them mean to all of us, and this is difficult news for our whole business,” Ms Berchtold said.

“We will explore redeployment opportunities wherever we can, where there are vacancies available in our wider network.”

She said some stock at the closing stores would be placed on discount, while key products will be reallocated to other stores.

FTI said it recognised the restructure would have “a material impact” on staff.

“Whilst the impacts are highly regrettable, the receivers believe the steps are unavoidable if David Jones is to continue as a viable business and these measures will help give David Jones the best chance for a sustainable future,” they said.

The receivers did not provide an expected number of job losses for the retailer, which currently employs 6000 people.

David Jones’ other stores in WA, Karrinyup and Claremont, are set to remain open for now.

In a separate letter, Ms Berchtold thanked suppliers for their ongoing support.

“We know this news will be difficult to hear, and we do not take it lightly. Our brand partners are an important part of the David Jones story, and we are grateful for your support, your partnership and the care you show for our customers and our teams,” she said.

The last day of trade for each store is yet to be confirmed. With Black Friday sales just weeks away, David Jones expects affected stores to continue trading through the peak period.

The Shop, Distributive and Allied Employees’ Association vice-president Bernie Smith said it was a “sad and stressful day” for all David Jones workers.

“No one should forget that their plight is entirely the fault of bad management decisions and initiatives going back years, if not decades,” he said.

“For many long-termers their jobs with DJs have been a matter of pride if not love. And this is how that loyalty is repaid.”

Early talks failed to save DJs

It was revealed on Tuesday that David Jones was sounding out restructuring plans nearly four months before it was handed over to administrators and receivers last week.

The retailer had wanted to keep 12 stores open at full rent, while seven others would remain open if offered rent relief. The other 19 stores would have closed.

Nine sites that are now to be closed are at Westfield shopping centres owned by ASX-listed Scentre Group, with others in malls owned by GPT, Stockland and Vicinity Centres.

There are now talks the collapsed retailer could be sold back to private equity firm Anchorage Capital Partners.

Vicinity boss Peter Huddle told The West last week it had “plans in the event that there is no David Jones”.

Asked if Vicinity would be disadvantaged if David Jones closed stores within its malls, Mr Huddle said: “For Australia I think losing David Jones is a loss, but for us . . . we’re not overly concerned”.

“We know we have some very good real estate that will be in demand for David Jones or for whoever might be interested in that business,” he said.

In bombshell revelations that came to light in documents published late on Tuesday, creditors were told a meeting was held on July 27 between administrators McGrathNicol, representatives of David Jones’ owner Anchorage Capital Partners, including David Jones group director Simon Woodhouse, and lender Hilco Capital to discuss the retailer’s financial performance and potential restructuring scenarios.

Yet there was no further engagement until late October.

Ms Berchtold did not meet with McGrathNicol until October 28, when contingency planning took place.

On November 4, a day before David Jones’ collapse, Mr Woodhouse spoke to administrator Shaun Fraser on two occasions, when he requested McGrathNicol to provide draft appointment documents for a board meeting the following morning.

But the documents also revealed Anchorage was alert to the possibility of David Jones’ collapse as early April, when McGrathNicol was engaged by law firm Corrs Chambers Westgarth — acting on the behalf of Anchorage — to review and analyse limited financial information relating to David Jones.

FTI earlier this week said sales and customer traffic have hit record levels since David Jones collapsed, even as fashion brands strip stock from stores and suppliers hold back deliveries.

But it provided no sales figures or comparison period to substantiate the record claim.

Australian and overseas suitors are now circling David Jones, with the administrators setting a Friday deadline for expressions of interest.

The first creditors’ meeting will be held next Tuesday. Administrators said they would seek additional time to pursue a sale or recapitalisation, with a key second meeting to decide on David Jones’ future potentially pushed back by three months.

The full list of store closures:

• Carousel, WA
• Garden City, WA
• Hay Street Mall, WA
• Glen Waverley, VIC
• Green Hills, NSW
• Highpoint, VIC
• Hornsby, NSW
• Macarthur Square, NSW
• Macquarie Centre, NSW
• Malvern Central, VIC
• Marion, SA
• Newmarket, NZ
• Parramatta, NSW
• Robina Town Centre, QLD
• Sunshine Plaza, QLD
• Warringah Mall, NSW
• West Lakes, SA
• Woden, ACT
• Wollongong Central, NSW