Steinhoff to resolve litigation and reduce debt and financing costs

DURBAN – Steinhoff International’s share price declined by more than 7 percent on the JSE yesterday after the troubled retailer reported further losses of €1.84 billion (R35.8bn) for the year to the end of September 2019, up from €1.19bn a year earlier.

The group released its year-end results after the close of the market on Tuesday evening.

The retailer is still trying to shake off an accounting scandal of December 2017, which led to its share price collapse by more than 95 percent. 

Steinhoff has acknowledged that it was continuing with its journey to address past deficiencies and to bring stability to the group and its businesses.

“While the road ahead remains difficult, the financial year to end-September was a pivotal period for the group, during which we made tangible progress, most significantly with the completion of our financial restructuring following the implementation of the company voluntary arrangements and the associated changes to our group structure and governance arrangements,” the group said. However, the group continues to face massive claims in the wake of the 2017 scandal that threaten its existence.