Steinhoff shares are trading a little higher Tuesday, after a Dutch court has ruled the troubled furniture and discount store owner must amend its 2016 accounts. The ruling states that Steinhoff must amend its existing 2016 accounts to show it held a 50% stake in furniture stores POCO.
They currently show 100% ownership by Steinhoff.
At around 1100 BST, Steinhoff shares were 3.63% higher at €0.37. The Steinhoff stock lost much of its value after admitting accountancy problems back in November 2017.
Steinhoff case pre-dates accountancy scandal
The case against Steinhoff regarding the way it listed its 2016 accounts, was brought before the South-African based business was hit with the catastrophic accountancy scandal.
Ex-partner, Andreas Seifert accused Steinhoff of false accounting with regards to the way it listed ownership of its German furniture retailer, POCO Einrichtungsmarkte GmbH.
Seifert owned 50% of POCO at the time and is still awaiting a payment from Steinhoff for his 50% share of the business. The Steinhoff 2016 accounts stated itself as the sole owner of POCO.
The Enterprise Chamber of the Amsterdam Court of Appeals has ruled in favour of Siefert and said Steinhoff must change its 2016 accounts, accordingly.
Not all bad news
While Steinhoff studies the ruling and decides on its next course of action, it’s not all bad news for the troubled global retailer.
The Asian arm of the mainly furniture-store owning retailer, has reportedly secured a $300 million line of credit from an existing banking syndicate. The loan will mean the Asian arm of Steinhoff International can continue business for the next 12 months.
That news comes as Steinhoff has appointed former KPMG partner, Richard Heis, to lead its restructuring operation. Heis has over 25 years’ experience and was previously head of global restructuring for KPMG in London.
“We are delighted that Richard has agreed to join the group at this critical time and we are sure that his expertise and experience will bring significant benefit to the group as Steinhoff develops a plan to address the group’s financial indebtedness,” said Steinhoff’s acting chairperson, Heather Sonn.