Retailer Steinhoff International, the parent of the Dealz discount stores, has revealed that its accounting errors stretch back into 2016, highlighting the extent of wrongdoing at the clothing and furniture group that led to an unprecedented stock slump over the last week.
Earnings for this year and last will have to be restated, the South African retail giant said in a statement, prompting the shares to slide anew. The issues relate to the viability of assets on the balance sheet of operations in Europe, it said.
Steinhoff has expanded aggressively outside Africa in the past three years, adding the UK’s Poundland/Dealz to European brands such as France’s Conforama.
The announcement comes days before Steinhoff is due to meet banks to navigate a way out of its crisis, which has wiped more than €10 billion off the value of the company.
At stake is the future of a retailer with 130,000 employees and a host of international brands.
The shares fell another 13.3 per cent on Thursday in Frankfurt, where Steinhoff moved its primary listing from Johannesburg two years ago.
– Bloomberg
