Steinhoff International investigation results in further material impairments
Its shares plunge in Frankfurt
Steinhoff International Holdings shares plunged to a record low after the retailer warned of impairments beyond the €6bn reported in December and said it’s facing at least five lawsuits. Auditors at PwC have told the owner of Conforma in France and Mattress Firm in the US that the overstatement of profits and the handling of off-balance-sheet entities will result in “material additional” asset writedowns, Steinhoff said in a statement on Thursday. The full extent will be presented alongside first-half financials next month. The company is also investigating the roles played by those previously at the helm, with former CEO Markus Jooste likely to be top of the list. The shares plunged 8.2% in Frankfurt to an all-time low of €0.11 before paring losses to trade 4.3% down at €0.1199 as of 4.20pm in the city. The stock has crashed more than 96% since Steinhoff first reported financial irregularities on December 5, wiping almost €12.5bn off its market value. Steinhoff faces a make-or-brea...
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