Amid accounting investigation.
Steinhoff International has appointed Moelis & Company and AlixPartners as independent financial advisor and operational advisor, respectively, with immediate effect. Moelis will support and advise on the Group’s discussions with its lenders, while AlixPartners will assist on liquidity management and operational measures. These appointments follow the announcement of accounting irregularities that require further investigation.
Following the resignation of former CEO, Markus Jooste, and subsequent events, the supervisory board has taken a number of actions to date, including the following:
- A board subcommittee, composed solely of independent non-executive directors and headed by Johan van Zyl has been constituted to bolster the independent governance of the group. The other members are Dr Steve Booysen and Ms Heather Sonn;
- The audit committee is working with statutory auditors, Deloitte to facilitate the release of audited financial statements;
- PWC has been appointed as forensic investigators and they have commenced their investigations
A statement from Steinhoff International said, “The Group is currently fully focussed on safeguarding operational liquidity to continue funding existing operations throughout its various subsidiaries. In this context, the Group is asking for and requires continued support in relation to existing facilities from all its lenders to achieve an immediate stabilisation of the Group’s financing.”
The Group confirmed that trading in the underlying businesses across the globe continues uninterrupted particularly in the pre-Christmas period.