Steinhoff, which is also listed in Frankfurt, delayed the results after finding holes in its accounts, shocking investors who had backed its reinvention from small South African furniture outfit into a discount furniture retailer straddling four continents.
JOHANNESBURG - South African retailer Steinhoff on Tuesday reported a $4 billion operating loss in the 2017 fiscal year, in a much-delayed earnings report revealing the impact of a $7.4 billion accounting fraud.
“The consequential impact of reversing the accounting irregularities is the fact that the restatements highlight that several of the group’s operating entities are unprofitable,” Steinhoff said in a 359-page annual report posted on its website shortly before midnight. Shares in the company closed 1% higher on Tuesday at R2.01, valuing the company at around R8 billion, a dramatic fall from grace in terms of market capitalisation, after it fetched more than R240 billion just 17 months ago.
Months before Steinhoff uncovered dodgy bookkeeping practices, it had been on an acquisition spree in Europe, scooping up Poundland in the UK and paying an eye-popping 11% premium to buy Mattress Firm for $4.8 billion.
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