Steinhoff International Holdings has continued to make headlines both in South Africa and abroad as the company continues to lose a significant amount of value on the JSE this week, after the retailer revealed “accounting irregularities” and its chief executive quit.
Steinhoff International lost more than 63% of its stock value on the JSE on Wednesday, losing billions of rands in assets.
The holding company which owns Mattress Firm in the US and Poundland in Britain parted ways with its veteran chief executive Markus Jooste.
German public prosecutors say a criminal team will be examining documents seized in its investigation into Steinhoff.
Ray White spoke to market commentator at Ashburton Investments, Wayne McCurrie to find out more about the company and what this means.
They came back and said information has come to light today with alleged accounting irregularities, that was the big bloodbath that happened in the shares. And then today they issued another statement saying, from what we can ascertain, they doubt the validity and recoverability of about 6 billion euros worth of assets.— Wayne McCurrie, Market Commentator at Ashburton Investments
Ultimately this will end up being a criminal investigation, at the moment its just a story related to essentially accounting fraud, that something is wrong in the books of Steinhoff...— Wayne McCurrie, Market Commentator at Ashburton Investments
Click on the link below to listen to hear more about the companies loss....
This article first appeared on 702 : Steinhoff 'irregularities' will end up as a criminal investigation - expert