Star quick to distance itself from the Steinhoff name and scandal
Few can honestly claim to have never been embarrassed by their parents. Yet for Steinhoff Africa Retail (Star), there’s more at stake than just an awkward silence when an outdated remark falls flat. The continent’s biggest seller of clothing was left mortified in December, when majority shareholder Steinhoff International Holdings reported accounting wrongdoing that wiped 90% off the parent company’s market value. Star was initially dragged down by the panic that ensued from the revelations, plunging more than 30% in two days. The reputation risk was compounded by Steinhoff’s announcement that Star had agreed to gradually repay R16bn of debt to shore up its parent’s liquidity. However, the stock has since clawed back more than half the deficit as investors acknowledge its own 2017 financials have been audited and are apparently untainted by the scandal. Now the Cape Town-based retailer is trying to distance itself further from Steinhoff International. Chairperson Jayendra Naidoo is ...
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