Shares in the owner of Poundland lost well over half of their value on Wednesday morning, after the South Africa-based company said it had launched an investigation into accounting irregularities and that the chief executive had unexpectedly tendered his resignation.
Shares in Steinhoff, which is listed in the Netherlands, plummeted almost 60 per cent in early trading. The group said that it had approached professional services firm PwC about undertaking an independent investigation into its accounts and that it would update the market as that investigation proceeds.
It said that it would publish the audited 2017 consolidated financial statements “when it is in a position to do so” and that it would also determine whether any prior years’ financial statements would need to be restated.
CEO Markus Jooste will leave the company with immediate effect and the supervisory board has appointed its chairman, Christo Wiese, to take over on an interim basis.
Steinhoff also said that it was advising its shareholders and other investors to exercise caution when dealing in the securities of the company.
Steinhoff is a sprawling corporation which operates approximately 12,000 retail outlets across 30 countries. As well as Poundland, it owns Benson for Beds, Harveys Furniture and Pep&Co in the UK.
