Steinhoff shares plunge after CEO quits
By Renee Bonorchis - Dec 6th, 14:16
Steinhoff International plunged by a record 62% after CEO Markus Jooste quit in the wake of irregularities in the company’s accounts that require further investigation.
Shares in the furniture and clothing retailer fell as low as R17.56 before paring losses to trade 61% lower at R18 as of 09:10 in Johannesburg. That wiped R117bn off the value of the stock to give it a market capitalisation of R76.2bn, according to data compiled by Bloomberg.
The owner of France-based Conforama and Pep in Africa has appointed auditor PwC to probe the matter, it said on Tuesday. South African billionaire and chairperson of the company, Christo Wiese, will run the company on a temporary basis.
The retailer, which has origins in South Africa, has a base in Amsterdam and a primary listing in Frankfurt, said on Monday it wasn’t able to release audited full-year financial results on Wednesday due to matters related to a criminal and tax investigation in Germany.
It had previously rejected allegations of dishonesty made in Manager-Magazin. That report said Jooste is among employees being investigated by German prosecutors in a 2015 case linked to possible accounting fraud.
Steinhoff shares were trading at R20.74 on the JSE shortly after 10:00.
Christo Wiese steps down as Steinhoff chairman
15/12/2017 - 11:46
Steinhoff International chairman and largest shareholder, billionaire Christo Wiese, is stepping down from the supervisory board following the accounting scandal that has engulfed the retail giant.
Steinhoff reveals accounting errors going back to 2016
14/12/2017 - 16:45
Steinhoff International Holdings has revealed that its accounting errors stretch back into 2016, highlighting the extent of wrongdoing at the clothing and furniture retailer that’s led to an unprecedented stock slump over the last week.
More probes into embattled Steinhoff as shares continue partial recovery
13/12/2017 - 13:11
Steinhoff’s share price gained another 26% to close at R11.76 on Tuesday even as more investigations into alleged fraud at the embattled global retailer were launched.
Reputation and corporate bottom line: Steinhoff as a case study
12/12/2017 - 11:17
Even though Christo Wiese has taken the helm as the interim CEO and is trying to stabilise the ship through the storm, Steinhoff faces the threat of becoming the biggest bankruptcy in South African corporate history. (Business Times, 10 December 2017).
Steinhoff pins hope on Moelis and AlixPartners
11/12/2017 - 09:29
Steinhoff International attempted to staunch the bleeding by appointing US investment bank Moelis & Company and management consultants AlixPartners on Sunday.