Department store giant David Jones has appointed the first female CEO in its 188-year history, after the removal of its former leader, Scott Fyfe.

Fyfe – a five-and-a-half-year veteran atop David Jones – said the decision to step down was made “by mutual agreement” with the retailer’s board of directors.

“It has been an honour to lead the business through some of the most challenging times, starting in covid, through a change of ownership and significant transformation across the business, delivering growth,” he added.

While Fyfe expressed pride at the retailer’s achievements under his tenure, David Jones has consistently made headlines this year for widening financial losses, delayed supplier repayments, and scepticism about its long-term transformation strategy under private equity owners Anchorage Capital.

The next chapter in this transformation will be led by Erica Berchtold, who enters the role after spending a year as David Jones’ chief commercial officer.

“It is a tremendous honour to be appointed CEO of David Jones, one of Australia’s most iconic retail brands with a proud 188-year history,” Berchtold said.

Known for her roles as CEO of Mosaic Brands and The Iconic, Berchtold’s appointment has been accompanied by the announcement of a refinancing plan between Anchorage Capital and Hilco Capital.

“The refinancing allows us to stabilise and reset the business with a strong focus on growing our strategic core and modernising our technology and digital platforms,” Berchtold added. “My aim is to further improve customer experience by curating our brand so that our strategy is aligned with our core values and the needs of our customers.”

David Jones said the three-year, asset-backed lending (ABL) facility with Hilco will “strengthen the balance sheet” and offer more flexibility to fund investments. Lewis McMenamin, the MD of Hilco, said the appointment of Berchtold will help lead a “well-positioned” David Jones through a new phase of growth.