Steinhoff hammered by claim of CEO probe
The story comes at a difficult time for Steinhoff as it is about to finalise a substantial transaction with Shoprite
For the second time in less than two years, retail group Steinhoff’s share price has been pummelled by allegations relating to its tax and accounting practices. On Thursday, the share price slumped almost 13% in early trade after reports in a leading German business magazine that a public prosecutor in Germany was investigating Steinhoff CEO Markus Jooste on suspicion of accounting fraud. The share fell to R57 in heavy trade after opening at R66 before recovering marginally to close at R60. The magazine describes founder Bruno Steinhoff’s ambition of creating a second Ikea, referring to the largest furniture retailer in Europe. It asks: “Is Europe’s second-biggest furniture group about to implode?” On Thursday afternoon, Steinhoff dismissed the allegations as wrong and misleading. It said the source of some of the allegations in the Manager Magazine article was a former joint-venture partner with whom the group’s subsidiaries were embroiled in litigation.
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