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Steinhoff Shares Extend Record Plunge After CEO Quits Amid Probe

Published on Dec 7 2017 9:17 AM in Retail tagged: Trending Posts / Poundland / Steinhoff / Accounting

Steinhoff Shares Extend Record Plunge After CEO Quits Amid Probe

Steinhoff International Holdings extended Wednesday’s record plunge in Johannesburg in the wake of accounting irregularities that claimed the furniture and clothing retailer’s chief executive officer, Markus Jooste.

The stock fell as much as 33% to 11.85 rand and traded at 12.23 rand as of 9:31 am in Johannesburg, giving it market capitalisation of 51.7 billion rand ($3.8 billion).

It dropped 62% on Wednesday after Steinhoff International, which employs about 130,000 people worldwide, announced that it was indefinitely delaying the release of its results, citing a criminal and tax investigation in Germany that dates back to 2015.

The retailer, which also has a base in Amsterdam and a primary listing in Frankfurt, said in a statement that it had received expressions of interest in certain noncore assets.

Steinhoff also said its African unit will formally commit to refinancing its long-term liabilities owed to the company.

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

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