Tekkie Town fight drags down Star
The sneaker brand's CEO and chief operating officer resign, sending its share price down 4.6% to R16.57
Already struggling to distance itself from its scandal-ridden parent, Steinhoff Africa Retail (Star) is having to confront another crisis. On Tuesday, Star’s wholly owned subsidiary Tekkie Town was thrown into turmoil after its CEO and chief operating officer walked out, after months of acrimony that saw Tekkie Town saying earlier in June it would sue Star over an earn-out agreement with Steinhoff. Star’s share price ended Tuesday 4.61% lower at R16.57. The new drama is another unwelcome distraction for Star’s management, who are struggling to contain the fallout from an accounting scandal at Steinhoff International, which wiped out more than 90% of the parent’s value. That has also seen Star’s corporate governance questioned after it decided to set aside money to bail out executives whose incentive schemes were tied to Steinhoff’s share price. Hostile treatment Investors will question whether the ongoing hostility between Star and Tekkie Town founder Braam van Huyssteen could have ...
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.