Steinhoff reveals €599m loss as scandal continues to unfold

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Steinhoff update

Steinhoff recorded a loss of €599 million (£530 million) in its interim results, as it struggles to push forward its restructuring scheme.

Today the embattled South African retail company, which owns Poundland, Harveys and Bensons for Beds in the UK, restated its financial results for the same period a year prior, revealing a further €362 million (£320 million) loss.

“The past seven months has been a very challenging period for the people in our group, and we would like to make use of this opportunity to thank the management and employees of the underlying businesses for their leadership and loyalty to keep the businesses going and retain value for the group under extremely difficult circumstances,” its board stated.

Despite the substantial losses, Steinhoff has been given the green light by its creditors on “key commercial terms” allowing it to push forward with its €10 billion (£8.85 million) debt restructuring plan as well as to extend the deadline for talks to July 20.

This comes after numerous legal challenges to both the company itself and its auditors Deloitte over the accounting scandal in which a €6 billion black whole was discovered.

This set off a chain of events, namely the sudden resignations of chief executive Markus Jooste, chairman Christo Weise and chief financial officer Ben la Grange, and a crash in Steinhoff’s share values.

Dutch investment group VEB have brought a lawsuit against Deloitte, alleging it had “seriously failed in its statutory task as auditor”.

Wiese announced he was also suing the group, hoping to claim £3.5 billion from cancelling purchases of its shares in 2015 and 2016.

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