Shares in global retailer crash almost 70% after CEO resigns

Poundland Parent Steinhoff Announces Investigation Into Accounting Irregularities

Star's share price fell 29% to R17.55 on Wednesday morning following the announcement of Jooste's departure.

Steinhoff International CEO Marcus Jooste resigned on Tuesday night, and the release of the company's full-year results - originally scheduled for Wednesday - has been delayed indefinitely.

"We're going to have to look very, very carefully and what comes out of the investigation and obviously, we are very keen to get information into the market as soon as possible".

The owner of the France-based Conforama furniture store chain and Pep clothing stores in Africa has appointed auditor PwC to probe the matter, it said in a statement on Tuesday.

Steinhoff nearly merged with Shoprite earlier this year which would have formed Africa's largest retailer but the plans were scrapped in February.

"The supervisory board of Steinhoff wishes to advise shareholders that new information has come to light today which relates to accounting irregularities requiring further investigation", it said in a statement. Omri Thomas of Abax Investments, the 15th largest investor in Steinhoff, said because there was no immediate prospect of any clarity on its results, it was hard to put a value on Steinhoff and this had prompted the severe share reaction.

Steinhoff said in a statement that it would publish its audited 2017 consolidated financial statements when it is in a position to do so.

Steinhoff shares had previously slumped 18% on Monday and Tuesday.

Over near two decades Mr Jooste has overseen Steinhoff's expansion from a South African furniture manufacturer to one of the world's biggest household goods retailers.

Supervisory board Chairman Christo Wiese will step in as executive chairman on an interim basis.

While the company has been under investigation for suspected accounting irregularities by a state prosecutor in Germany since 2015, it is not clear if these are the accounting irregularities the company was referring to in its statement. Theodore de Klerk was appointed as his replacement, PSG said on Wednesday. Deloitte declined to comment due to client confidentially obligations and the ongoing investigations.

Related News:



Most liked

Labor Senator referred to High Court over citizenship
Labor has been in talks with the crossbench to get backing for the referrals, as has Prime Minister Malcolm Turnbull. The High Court is due to go on a summer break from December 15 and is slated to return February 5.

Roger Goodell Signs Contract Extension With "Nearly Unanimous Consensus" Among Owners
The position has been a lucrative one for Goodell, who has earned more than $200 million since 2006, according to ESPN . All 32 owners unanimously granted the Compensation Committee permission in May to negotiate an extension with Goodell.

LifeWay survey: Evangelical support for Israel dwindles among millennials
Hyung Eun Chi, of Seoul, South Korea, both supporters of The Fellowship's work on behalf of Israel and the Jewish people. The changing attitudes of younger evangelicals are not surprising when seen in light of broader social trends.

Tremors felt in Delhi-NCR as quake hits Uttarakhand
Strong tremors were felt in Delhi NCR followed by a moderate quake which was felt in Uttarakhand on wednesday at about 8:45 pm. Meanwhile, Uttarakhand also witnessed heavy snowfall in the hilly regions of the state on Wednesday, bringing the mercury down.

City derby win would be massive - De Bruyne
They keep winning, they didn't lose one game and obviously, mentally, they're very strong. That gives us the best chance to win.

'TIME' Names the #MeToo 'Silence Breakers' as Person of the Year 2017
This image represents the unnamed women and men who have come forward anonymously with their stories of sexual abuse. How does Time choose its Person of the Year?

Paul Scholes: What makes Luke Shaw Man United's best left-back
Manchester United boss Jose Mourinho withdraw Marcos Rojo from last night's Champions League win over CSKA Moscow due to fatigue. Good performance and good attitude. "I am not the luckiest guy with draws, so it's better for me to shut up and forget it".

Kate McKinnon shows off Gal Gadot impression
McKinnon ended the interview by saying Gadot had "changed the game, flipped the script". I love to watch my children run in the sand. I love to go to the Maldives...

Atlanta mayor's race comes down to close call
Democratic Party of Georgia chief Dubose Porter told the crowd Bottoms was "beyond being the most qualified person in the race". King Momon, professor of politics at Oglethorpe University in Atlanta. "This is very close".

US Supreme Court allows Trump's travel ban to take full effect
The ban also covers people from North Korea and some Venezuelan government officials, but those provisions were already in effect. The court's brief, unsigned orders on Monday urged appeals courts to move swiftly to determine whether the latest ban was lawful.

Amazon Prime Video arrives on Apple TV at long last
Apple TV users have always been demanding the app, but the unstable relationship between the two companies delayed the process. There's also a new Sports tab in the Apple TV app which is home to information about teams, leagues and on-going games.

Suspect captured in Graham school shooting, 2 still at large
The sheriff's office said they are looking for multiple male suspects who fled in a green vehicle, possibly a Chevy Impala. After deeming the campus secure, the sheriff's department and Bethel School District allowed students to be released.

Billy Bush outrage over Trump denial of 'grab them by the pussy'
And I said, 'Okay, you're reopening wounds on them too. "Enough's enough ... stop playing around with people's lives". The then-Celebrity Apprentice host said he is "automatically attracted to handsome women" and starts kissing them.

Sergio Ramos responds to rumours about his relationship with Cristiano Ronaldo
The Germans have not won in seven, with their last victory coming againt Madgeburg in the Pokal Cup . Madrid were held to a 0-0 draw away to Athletic Bilbao on Saturday in La Liga.

Kim Kardashian Just Set A Match To Her Feud With Taylor Swift
Fans explained that snakes (Swift's symbol) eat rats (Kardashian's symbol), which is why the emoji was chosen for the reality star.