SA retail abroad: buccaneers with burnt fingers
Steinhoff saga begs a hard look at global forays by local groups
The scandal surrounding Steinhoff International has placed local retailers - and particularly their lofty ambitions of global expansion - under scrutiny. Steinhoff, dual-listed in Frankfurt and South Africa, catapulted itself to infamy when CEO Markus Jooste resigned after the company was accused by German authorities of misstating its financials for the past few years. The company, which had been on an acquisition spree - clinching deals worth almost R70-billion on three continents in the past two years - lost almost 90% of its share value last week in under 72 hours. The blatant disregard the company showed for financial accounting brought into question the ability of other South African businesses - which often groom themselves for international dominance - to carry the weight of becoming conglomerates.Rushed deals Phibion Makuwerere, a financial analyst at Intellidex, said in hindsight one might argue that some acquisitions have seemed rushed, and lacking in thorough due diligen...
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