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Steinhoff fights lawsuits in three countries as crisis continues

Dec 19 2017 13:13
Franz Wild, Bloomberg News


Company Data

Steinhoff International Holdings NV [JSE:SNH]

Last traded 8
Change 1
% Change 10
Cumulative volume 12739895
Market cap 0

Last Updated: 01/01/0001 at 12:00. Prices are delayed by 15 minutes. Source: McGregor BFA

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London - While shareholders prepare to sue Steinhoff International [JSE:SNH] after its steep share decline this month, a former business partner has beaten them to the punch, filing lawsuits in three countries over the retail giant’s accounting.

Andreas Seifert opened civil suits against Steinhoff in Germany, the Netherlands and his homeland of Austria through his OM Handels, according to a statement from his group.

Steinhoff committed false accounting by not acknowledging Seifert’s shareholdings in POCO Einrichtungsmarkte, a German furniture retailer, and Conforama France, a French homeware store, the statement said.

The challenges come as Steinhoff prepares to meet its bankers on Tuesday in an attempt to control a deepening accounting scandal.

The crisis has already led to an 80% drop in the retailers share price and forced CEO Markus Jooste and chairperson Christo Wiese out of their jobs. Now, law firms are trying to get shareholders to join class action lawsuits over the losses.


Steinhoff

Steinhoff said it would be inappropriate for it to comment on pending litigation.

In April, a regional court in Dortmund, Germany is due to start hearings on whether OM has a right to a 50% stake in POCO, according to a court spokesperson. The second case, in Amsterdam’s Enterprise Chamber, is similar.

The Dutch court has indicated that it will determine whether Steinhoff’s accounting was inaccurate because of the way it included revenue from POCO, OM said.

Seifert made the third claim in Austria in 2011, laying claim to a 50% stake in Conforama, which OM said he acquired through the conversion of a loan, according to the statement. It’s unclear when this case will conclude, it said.

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Steinhoff International, once the darling of fund managers, risks falling out of the JSE top 100.
 

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