The restructure and renewal of David Jones has led to some of the bosses losing their jobs. John Dixon, head of Australian fashion and food retailer David Jones is among the people that lost their positions. Dickson, who was the second-highest-paid executive in Woolworths, was made CEO of the company in September last year. His role as regional CEO was discontinued following a restructure of David Jones by Woolworths Holdings Ltd. . Woolworth bought David Jones in 2014 for 2.1 US billion dollars and announced a cash impairment charge of $A712.5 million. The company pointed blame on the impairment of poor execution of the organization’s key initiatives by David Jones. The restructure and renewal of David Jones resulted in a collective group, Woolworths Holdings Limited.
RESTRUCTURE OF DAVID JONES AND EMERGENCE OF WOOLWORTHS HOLDINGS LIMITED
Woolworths is combining Country Road Group and David Jones into one group called Woolworths Holdings Limited. Woolworth said this was a logical step after moving the head offices of David Jones and Country Road Group. The head offices of David Jones and Country Road Group moved to a single campus based in Richmond. Consequently, the step resulted in the promotion of John Dixon, previously appointed as David Jones CEO in 2015. As part of the restructure of David Jones, some chief operating officers were reported leaving with immediate effect.. Country Road Group has gone through several executive upheavals in past years following the sudden departure of two of its CEs. In conclusion, the restructure and renewal of David Jones has affected the Country Road Group.
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FINANCIAL PERFORMANCE EFFECT OF RENEWAL OF DAVID JONES
Woolworth describes its recent fiscal year as the most difficult financial period. The problematic financial period is as a result of costs and disruptions association by the restructure and renewal of David Jones. Woolworths impaired the carrying value of David Jones by close to R7 billion, thus leaving it with a full-year loss. Woolworths introduced new merchandise and finance systems to its David Jones department this year. Furthermore, David Jones’s head office moved from Sydney to Melbourne, resulting in an improvement in sales. Woolworth has mentioned that the restructure of David Jones has reduced its cost base across Australia by A$25 million. Woolworths adds that trading for the first seven weeks of the New Year financial year has had positive results. The emergence of the three companies to form Woolworths Holdings Limited has thus had both positive and negative consequences. More order instructions