Australia’s premier upmarket department store David Jones has collapsed into voluntary administration, putting thousands of jobs at risk and leaving the future of the 188-year-old retailer hanging in the balance.

The upheaval follows years of steep losses and underperforming stores that left the heritage retailer falling behind on rent, culminating in a breakdown of negotiations with its primary landlord, Westfield owner Scentre Group.

Staff were informed on Thursday that the David Jones board had appointed voluntary administrators from McGrathNicol, before the retailer’s main financier promptly installed FTI Consulting as receivers.

Under the dual appointment, FTI will take day-to-day control of operations, running the department store network while it restructures the business.

The process will almost certainly trigger immediate store closures, though receivers will try keep the core network open while hunting for fresh capital.

Analysts expect closures to hit outer-suburban and regional mall…