00:01This is a period of uncertainty for David Jones.
00:04As it goes into administration, there are a lot of options.
00:07It could keep its doors open, it could sell off some stores,
00:10including a store near you, or it could cease trading.
00:13This means that if you've got a gift card,
00:16you want to use it as quickly as possible.
00:18If, in the worst case, the company stops trading,
00:21it closes its doors, you'll be considered an unsecured creditor.
00:25That means you'll be waiting months or years
00:27to see if you get any of that money back.
00:29Okay, and what happens to loyalty points
00:32that you may have built up by shopping at DJ's?
00:35What happens to those?
00:37These are things that the administrator will consider
00:39if the company winds up.
00:41It's very likely you could get very little for your rewards points
00:45or they won't be on it at all.
00:47In past company collapses, the big one is Dick Smith's in 2016.
00:51We saw that people just fully lost the money they had in gift cards
00:55and even in deposits they've made on some items that they pre-purchased.
00:59Christmas is coming, of course.
01:01And if you're very organized, you may already have items on lay-by
01:04at David Jones.
01:05What's your advice, Erin, on that?
01:08If you can, get them as soon as possible.
01:11Like I said, we've seen in previous company collapses
01:14that if you've prepaid for something or even partially paid for something
01:19and the company goes under, there is a risk that you may not get that item
01:22or get your money back.
01:24So if you can, grab it.
01:26And the most important thing is do not buy a gift card
01:29at this uncertain point.
01:30That just means that the person you're gifting it to
01:33may not be able to use it in the future.
01:35Okay.
01:35And what if you've ordered something online from David Jones?
01:38Should you cancel the order if you can or are you best just to wait?
01:43It depends on your risk tolerance there.
01:47But what we do know is that the administrators have said
01:50that David Jones will continue to trade.
01:52So if you've just bought something, you're probably going to receive that
01:56and it might be okay.
01:57If you didn't and you paid by credit card,
02:00you still have the option of getting a charge back through your bank,
02:02which means you could still get your money back.
02:05And sadly, as we've been hearing, retail jobs are on the line with this news
02:09at the stores in receivership, Erin.
02:12But bargains are to be had, aren't they possibly, for consumers
02:15if the receivers decide that they want to shift excess stock?
02:20It's entirely possible.
02:21But we've also seen bad behaviour from some companies in troubled times.
02:25The Dick Smith example, they aggressively sold gift cards
02:28when they were in financial trouble.
02:30And what we saw out of that is that consumers lost an estimated
02:34$2.5 million in gift card value when that company shut its doors.
02:38So if you are looking for a bargain, just be really clever with what you buy.
02:42Avoid lay-by.
02:43If you're not picking up the thing you're buying and taking it home,
02:46I'd be cautious.
02:47And where are customers in the line of people wanting their money back
02:50in situations like this with a retailer on the ropes financially?
02:55Quite often customers are right at the back of the line.
02:59If you've got money stored in gift cards,
03:01you're considered an unsecured creditor.
03:04Now, we've argued in the past that this shouldn't be the case.
03:08Gift cards are consumers' money.
03:10When you buy a gift card, that company puts that straight in the bottom line,
03:14that dollars go straight to them.
03:16What we prefer is law reform, so that gift card money is held in trust.
03:20It's consumer money and it should be protected.
03:23it.
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