Background: Breville is the iconic Australian appliance brand behind those coffee machines and toasted sandwich makers we all know and love. Founded in Sydney in 1932, the company now sells its products in 70 countries worldwide. And for decades, David Jones was one of the places you could find Breville products.

What happened: Company insiders revealed that Breville cut ties with David Jones earlier this year, after changes to payment terms prompted the company to pull its business. So Breville started selling more of its products through other retailers like Harvey Norman.

What else: David Jones collapsed late last week, leaving a number of suppliers in the dark over whether they'll be reimbursed for unpaid debts. So while plenty of businesses are now left counting their losses, Breville might've avoided the worst of it by spotting trouble early... and getting out before the department store went under.

What's the key learning?

💡 Knowing when to walk away from a business relationship could end up saving a business's bottom line. In retail, the relationship between a supplier and retailer means both sides take on "counterparty risk." And if either side doesn't hold up its end of the bargain, someone can be left out of pocket.

💡Think of it like shouting the first round at the pub and trusting your mates to shout one back. But if someone keeps promising to get the next one and never does... it's probably time to stop buying their drinks.  

💡 Breville had already been caught in the fallout of Bed Bath & Beyond's collapse in 2023, and another department store collapse in Canada last year. So when payment issues started cropping up at David Jones earlier this year, the warning signs were hard to ignore.