Steinhoff legal battle suspended

Steinhoff International Holdings has been thrown a lifeline, with investment group VEB/European Investors agreeing to suspend collective ongoing legal action until 3 April 2019.

VEB/European Investors sued Steinhoff in the Dutch Court for incorrect and misleading financial statements, prospectuses and press releases, which led to financial losses by Steinhoff shareholders.

The suspension allows the struggling furniture retailer to focus on its ongoing restructuring and make further progress in its internal investigations and financial statements.

“Steinhoff is engaged in a complex reorganisation as it restructures its financial liabilities and finalises investigations and financial statements,” Steinhoff acting chief executive Danie van der Merwe said in a statement to investors.

“This agreement allows us time to focus on completing these tasks in the interest of all stakeholders.”

Once the suspension is lifted, the companies will be free to continue legal proceedings, or to negotiate a settlement.

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?


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

11 hours ago

Aussie-born Mexican fast food chain Guzman y Gomez was founded by two Americans. Now the company has opened its fir…

1 day ago

Alceon Group is reportedly in talks to bring more international brands to Australia. We caught up with Richard Faci…

1 day ago