Steinhoff tests interest in profitable east European clothing chain Pepco
Star has previously made an expression of interest in Pepco, as well as UK discounter Poundland, which was rejected
Johannesburg/London — Steinhoff International is gauging takeover interest in businesses including clothing chain Pepco as the scandal-hit retailer prepares for the next phase of a recovery plan, according to two people familiar with the matter. The South African company has informally sounded out potential buyers for Pepco including private equity firms, said the people, who asked not to be identified as the plans are not public. The profitable chain, with more than 1,300 stores in eastern European countries such as Poland and Romania, has emerged as one of the jewels in Steinhoff’s crown as the retailer battles to survive an accounting scandal. A formal auction of Pepco could come if or when Steinhoff agrees to a €9.4bn debt-restructuring deal with bondholders and other lenders, seen by the company as a crucial step towards avoiding insolvency.
The retailer is negotiating a two-year payment delay, people familiar with the matter said last week, and the company said on Friday...
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