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Has South Africa's Steinhoff recovered from the 9-year accounting scandal?

Has South Africa's Steinhoff recovered from the 9-year accounting scandal?
Asked by
Simon Mugo categorie-icon time-icon2 months ago
1 Answer Answer Question

James Mason
Answered time-icon2 months ago

Steinhoff is yet to recover from the accounting scandal unearthed in December 2017, which had been in operation since 2009. The furniture maker started out in South Africa before embarking on major global expansion that saw it operating on four continents at the peak of its glory, only for everything to fall apart in late 2017.

The company has since lost over 96% of its share value ever since the accounting fraud was made public in late 2017. This has been a huge blow to the company’s shareholders who helped fund the furniture store’s global expansion, but have watched in horror as the value of their share evaporated in the last year.

The firm is listed in Johannesburg South Africa and also in Frankfurt Germany and the shares have lost over 16% this week following the release of fiscal 2017 financial results, which saw the firm book a $4 billion loss. Therefore, the furniture retailer has a long way to go before recovering from the losses incurred after the scandal and it may be a long time before the firm reclaims its lost glory.

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