Poundland's South African owner sees shares slump after revealing 'accounting irregularities'

Steinhoff bought the Willenhall-based chain of discount stores for £610 million last year.

It has revealed its veteran chief executive, Markus Jooste, "has tendered his resignation with immediate effect and the board has accepted the resignation".

The company has also postponed its full year results as it calls in accountants from PwC to launch an independent probe into the accounting irregularities.

In a statement to South Africa's Johannesburg stock exchange, the company said: "The supervisory board of Steinhoff wishes to advise shareholders that new information has come to light today which relates to accounting irregularities requiring further investigation."

Steinhoff said it would release its 2017 figures "when it is in a position to do so". It warned it might have to restate financial statements from prior years.

Steinhoff's biggest shareholder and chairman, the billionaire Christo Wiese, has taken over as executive chairman temporarily.

In its statement the company added: "Shareholders and other investors in Steinhoff are advised to exercise caution when dealing in the securities of the group."

After initially falling 60 per cent to a seven year low, the shares in Steinhoff, which owns 40 local brands in more than 30 countries, later recovered but were still down 52%.

As well as furniture and homeware, it also sells products including clothing, footwear and consumer goods.

Its brands include Bensons for Beds and Harveys in the UK, Conforama in Europe, Pep and Ackermans in South Africa and Snooze in Australia. Steinhoff derives about 60% of its earnings in Europe and 34% in Africa.

It bought Poundland last year and has introduced its Pep&Co budget clothing brand into scores of stores.

Over near two decades Mr Jooste has overseen Steinhoff's expansion from a South African furniture manufacturer to one of the world's biggest household goods retailers.

In a statement last night the company said: "The supervisory board of Steinhoff wishes to advise shareholders that new information has come to light today which relates to accounting irregularities requiring further investigation."

Steinhoff moved its primary stock market listing from South Africa to Frankfurt in 2015. The group has been under investigation for suspected accounting irregularities by the state prosecutor in Oldenburg in Germany since the same year.

It is not clear if these are the accounting irregularities Steinhoff is referring to in its latest statement.