Poundland's parent company to restate 2016 figures it now considers unreliable
The crisis at Poundland's parent company took a fresh turn today, as it revealed it would have to restate last year's figures because they "can no longer be relied upon".
Steinhoff, which bought the Willenhall-based discount chain in a £600 million deal last year, has already said it is reassessing its most recent set of financial figures.
Its chief executive, Markus Jooste, quit last week when the South African-based group revealed it was postponing releasing of its 2017 figures because of "accounting irregularities" and had launched an investigation into previous year's results.
The crisis has wiped billions of pounds of Steinhoff's value and has cast doubt over the future of a retailer group with 130,000 employees at companies including Poundland and Bensons for Beds.
In a statement this morning Steinhoff said: "The company, on the advice of the independent committee of the supervisory board, has formed the view that issues concerning the validity and recoverability of certain Steinhoff Europe balance sheet assets under scrutiny in the 2017 audit work, are also relevant to the 2016 consolidated financial statements.
"Therefore, the company announces that, based on section 2:362 (6) of the Dutch Civil Code, the 2016 consolidated financial statements will need to be restated and can no longer be relied upon."
Steinhoff is listed on both the Johannesburg and Frankfurt stock exchanges. 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 per cent of its earnings in Europe.
Since buying Poundland last year it has introduced its Pep&Co budget clothing brand to scores of stores and has moved away from the company's traditional £1-for-everything format, introducing a broader range of products.
When the current scandal broke, Steinhoff called in accountancy giant PwC to conduct an independent investigation.
The board has appointed Steinhoff’s chairman, South African retail billionaire Christo Wiese, as temporary executive chairman following Mr Jooste’s resignation.
At least six organisations have said they are investigating the company, including the Johannesburg stock exchange and South Africa's parliament, Financial Services board and department of trade and industry.
Meanwhile four people connected to Steinhoff are being probed by German authorities for possible accounting fraud in a case dating back to 2015.
