Steinhoff reveals accounting errors going back to 2016
This highlights the extent of wrongdoing at the company, which is trying to sell ¤1bn of non-core assets and is meeting with its bankers next week
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. Earnings for this year and last will have to be restated, the retail giant said in a statement late on Wednesday, prompting the shares to slide anew. The issues relate to the viability of assets on the balance sheet of operations in Europe, it said. Steinhoff has expanded aggressively outside Africa in the past three years, adding the UK’s Poundland to European brands such as France’s Conforama. “Steinhoff has not done any major European acquisitions in the 2017 fiscal year so any asset adjustment would almost certainly have had to apply to 2016 as well,” Charles Allen, an analyst at Bloomberg Intelligence, said in e-mailed comments.
Would you like to comment on this article?
Sign up (it's quick and free) or sign in now.
Please read our Comment Policy before commenting.
Subscribe now to unlock this article.
Support BusinessLIVE’s award-winning journalism for R129 per month (digital access only).
There’s never been a more important time to support independent journalism in SA. Our subscription packages now offer an ad-free experience for readers.
Cancel anytime.
Questions? Email helpdesk@businesslive.co.za or call 0860 52 52 00. Got a subscription voucher? Redeem it now.