Cape Town, South Africa – Steinhoff International has reported Markus Jooste, its German ex-CEO, to the South African authorities for a possible breach of the Prevention and Combating of Corrupt Practices Act 2004.
Steinhoff faces South African parliament
The company is based in the Netherlands and listed in on the Frankfurt and Johannesburg Stock exchanges. A total of 67% of its shareholders are South African. The firm was one of the top ten shares in the JSE and are tracked by the South African Government's Public Investment Corporation and the South African Government Employees Pension Fund. Steinhoff's share price fell by 'nearly 85% between 4 and 11 December 2017,' as news of the irregularities broke said the delegation.
Following the news of financial irregularities in the German business, 'essential working capital in the international clusters, largely dried-up,' the delegation said. Access to banking families was 'severely constrained' following the news, Steinhoff added.
The delegation continued: 'We have been given support from lenders, and the majority of international operating subsidiaries have arranged their own working capital. By 26 January, most subsidiaries had access to operational liquidity.
The firm claims to be the second largest furniture and home goods retailer. It is integrated from bed and furniture production to retail in Europe. Steinhoff owns a number of high street bands such as Conforama (France) and Harveys and Bensons for Beds in the UK. In the US it has connections to Mattress Firm