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South African Retailer Steinhoff's Quarterly Sales Up 3%

Published on Feb 28 2019 1:30 PM in Retail tagged: Trending Posts / South Africa / Steinhoff / Quarterly Sales

South African Retailer Steinhoff's Quarterly Sales Up 3%

South African retailer Steinhoff reported a slight rise in quarterly sales on Thursday and said its business was still suffering from the effects of an accounting fraud.

Steinhoff was thrown a lifeline last July when its creditors agreed to delay debt claims for three years after the multinational retailer revealed a more than $12 billion hole in its accounts.

The owner of the Mattress Firm chain in the US and Conforama outlets in France said sales rose 3% to €4.7 billion($5.4 billion) in the three months to December, with a strong performance at separately listed Africa unit Pepkor compensating for weak results in France, the United States and Asia Pacific.

'Liquidity Constraints'

"The liquidity constraints and loss of confidence resulting from the discovery of the alleged accounting irregularities continued to have an impact on operations," chief executive Louis du Preez said.

Steinhoff has already written down the value of its assets by more than $12 billion following the initial findings of an independent investigation into the company's past bookkeeping practices.

The full findings of the forensic investigation, being carried out by accounting firm PwC, would be delivered to the board in mid-March before being made public in the middle of the following month.

News by Reuters, edited by ESM. Click subscribe to sign up to ESM: European Supermarket Magazine.

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