Steinhoff board member steps down

SteinhoffJayendra Naidoo has stepped down from the supervisory board of embattled retailer Steinhoff International, in order to focus his efforts on the board of Steinhoff Africa Retail Limited (STAR) where he is chairman.

The South African-based, Frankfurt-listed retailer said Naidoo’s position will be filled by a new independent director to be appointed in due course, as the supervisory board set up to deal with the company’s multiple accounting investigations continues.

In a liquidity update, Steinhoff also said it expects a refinancing and redemption of some or all of the financial indebtedness within South Africa; and the “development of a plan to address the group’s financial indebtedness”.

Waiver proposals to be made to certain financial creditors

In recent weeks, Steinhoff said it had received support from financial creditors to help it maintain stability.

“While the company is confident that it will receive sufficient support from its relevant finance providers to obtain these limited waivers, there can be no assurance that the company will be able to reach agreement with its finance providers on acceptable terms or at all.

In its update, Steinhoff reiterated that the Australian business is “an independent, profitable and financially strong business delivering positive cash flows with its own banking facilities and is not dependent on working capital support from the company.”

The debt and other liabilities of Steinhoff International have been estimated as high as $A61 billion, with the acknowledged debt for the over-arching corporate entity of more than $A16 billion and lease commitments for its stores of around $A15 million.

Steinhoff International’s share price plummeted by 80 per cent over 6-7 December, representing a loss of around $A15 billion in capitalisation after the company announced its auditors had refused to sign off on its 2017 accounts.

Access exclusive analysis, locked news and reports with Inside Retail Weekly. Subscribe today and get our premium print publication delivered to your door every week.


Comment Manually

Inside Retail Polls

What were the biggest challenges during the 2019 holiday period?


The Iconic is offering customers pre-paid postage labels to send old clothes in good condition to charity, rather t…

2 hours ago

After Kaufland's shock exit from the Australian market, the question on everyone's lips is why? Here's what indust…

4 hours ago

NSW-based party retailer The Party People plans to open two to four large-format pop-ups across the country this year. #retail #ausbiz

1 day ago