It was revealed that the accounting errors made by the Steinhoff International Holdings NV began way back in 2016, featuring the number of wrong actions done by the firm that has led to the collapse of stocks in a few days.
Steinhoff stated that the profits earned from 2016 to 2017 will have to be rehashed as an indication that they would shed light on the shares to take a better turn as this issue is linked to the activities regarding the assets and the operations responsible for the balance sheet in Europe. The firm has already expanded its grounds aggressively towards the outer areas of Africa within the past three years, counting in U.K’s Poundland all the way to European brands like France’s Conforama.
The announcement released by the firm only came several days before the firm is due for a meeting with the banks to find a way out of the scandal that has resulted in 10 billion euros to be wiped off the market value of the company. The Steinhoff scandal placed the future of the firm at stake along with the 130,000 employees as well as other international brands that are linked to Steinhoff, which leads to the Chief Executive Officer of Steinhoff International, Markus Jooste to resign from the company. The scandal has caused news to spiral up and media attention to hover all over on any recovering details on the Steinhoff news. The firm has already begun an operation to check for the accounting irregularities by appointing PwC.
Followed after the announcement for the ongoing investigation, the firm also said that they were analyzing the validity and recoverability of 6 billion euros worth of assets, and indicated that there is a possibility of irregularities hidden within the firm’s balance sheet. The scandal continues with a report by Manager-Magazin in August that Marcus Joost is one of the employees that will be involved in an investigation run by the German prosecutors as there is a link towards a 2015 case on possible fraud on the firm’s accounting book, this is followed by allegations that were thrown by Steinhoff were false.
Chairman and billionaire, Christo Wiese, has lost his billionaire title a few days after the scandal came to light, and has run the firm on an interval basis. Steinhoff eventually states that the company will attempt to sell the non-core assets worth 1 billion euros to reinforce the balance sheet.