Markus Jooste, the chief executive of the global retail group, Steinhoff, which owns Poundland, Bensons for Beds and Pep & Co in the UK, has resigned after accounting irregularities were uncovered at the company.

The company’s supervisory board has engaged PricewaterhouseCoopers (PwC) to conduct an independent investigation into the findings and would update the market as the inquiry proceeded. Steinhoff, which is incorporated in the Netherlands and listed on the Frankfurt and Johannesburg Stock Exchanges, said it would publish the audited 2017 consolidated financial statements when it is in a position to do so. The company added that it would determine whether any prior years’ financial statements would need to be restated.

The supervisory board appointed its chairman, Christo Wiese, as executive chairman on an interim basis. Additionally, Pieter Erasmus, the previous chief executive of Pepkor Group, was appointed in an executive advisory capacity to assist with managing the group’s various retail interests globally.

Steinhoff said Wiese and the board would supplement the management team and embark on a detailed review of all aspects of the company’s business with a view to maximising shareholder value. The supervisory said it wished to reassure shareholders that Steinhoff had a number of high-quality profitable businesses around the world.

Prior to the CEO’s resignation on 6th December the company had been due to publish unaudited financial statements for the financial year ended 30 September 2017 that day. The company had said on 4th December that the delay in releasing audited statements was due to the supervisory board and the statutory auditors of the Company not yet finalising their review of issues which were raised by a criminal and tax investigation in Germany. Steinhoff offices in Germany were searched as part of this investigation in November 2015.

Steinhoff has also been involved in a legal dispute with a former joint venture partner. This had resulted in a legal petition questioning the company’s 2016 accounts. A hearing into this was held at the Enterprise Chamber of the  Amsterdam Court of Appeal in September and a decision from the court is expected shortly.

Last Updated: 8 December 2017