Steinhoff secures more funding

Steinhoff-Horslepy-Park-renderSouth African-based, Frankfurt-listed retailer Steinhoff International has “largely addressed” its short-term liquidity requirements, after securing funding from subsidiary companies.

In a presentation on its website, Steinhoff also said its Asia Pacific businesses are continuing “discussions with their banks to secure additional funding by mid February”.

An investigation by PricewaterhouseCoopers into Steinhoff’s accounts is ongoing, the company said.

The retailer said it will restate its financial results going back as far as 2015, and will provide a trading update on the last three months of 2017 in the last week of February.

In December, Steinhoff Asia Pacific – which operates a number of high performing retail brands in Australia and New Zealand including Freedom, Fantastic Furniture, Best & Less, Snooze, Harris Scarfe, Plush, OMF, Postie and Bay Leather Republic – said it is financially strong but that it has appointed Minter Ellison and Ferrier Hodgson to provide legal, financial and corporate advice.

The South African retail group has also arranged new credit lines for units in the U.K., U.S. and France, while also agreeing with its South African lenders to repay 200 million euros owed to entities outside the country. The repayment will be funded with proceeds from the sale of shares in financial services firm PSG Group, which was announced last week.

Steinhoff said its focus now shifts to “broader lender engagement” and “developing strategic options,” with the conglomerate’s supervisory board looking to “deal with historical issues  as quickly as possible and in a transparent manner”.

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