South African retail giant Steinhoff is set to cut its debt and trim down its assets to focus on retail investments after a previous $7bn (£5.8bn) accountancy scandal.
Steinhoff’s management team said it aims to sell off its non-retail assets and cut jobs at Conforama – the French furniture chain – in a bid to cut its debt, City AM has reported.
A report in March uncovered the company had overstated profits for several years in a $7.4bn (£6.1bn) fraud.
Louis du Preez, who was appointed chief executive in January, told investors the company’s strategy to sell off its assets was the “only way to survive” and its debt of over $10bn was “too high”.
An investigation by PwC found the company had recorded fake or irregular transactions totalling up to $7.4bn (£6.1bn) over financial periods between 2009 and 2017. A summary of the findings was posted on the retailer’s website.
Steinhoff – which owns Poundland, Bensons for Beds and Harveys in the UK – reported a €356m (£330m) interim loss from continuing operations in July compared with a loss of €392m (£363m) in the same period in the previous year.
The groups outgoing chief financial officer Philip Dieperink confirmed the possibility of closures at Conforama and said most of the restructuring would happen in France.
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