Retailer Stienhoff has stated that its lenders have been withdrawing their credit interests following a number of allegations made against the company regarding some accounting irregularities.
The company made its admission during a presentation made to its investors in London. The company added that the allegations in question were being investigated and that the results would soon be released.
Stienhoff went on to state that the forecasts for all its companies were “evolving daily”. The company owns close to 6,500 outlets located in 30 countries around the globe and has made a tidy profit from its enterprises.
The company’s subsidiaries include the furniture chains Bensons and Harveys and the British variety store, Poundland.
A spokesperson for the latter stated that “nothing had changed” since Stienhoff was merely an “investor” not a “day- to- day manager” in the business.
However, despite Poundland’s thinly veiled show of confidence, the situation is bleak for Stienhoff.
In a statement made to the BBC, a board member of the South African government employee’s pension fund stated his regret that a company the size of Stienhoff was “getting to a value of zero.
He added, “I think we are going to have to cut all the way back and perhaps re-consolidate around South Africa again”.
The South African employee’s pension fund is the second largest shareholder in the retail conglomerate. Stienhoff’s shares began declining when it announced its decision to conduct an inquiry into the alleged accounting irregularities.
The decision, announced in early December acted as the catalyst for the current situation where the company has lost many of its top executives and is now well on its way to losing its main creditors.
The firm is also facing an investigation from German authorities for an accounting fraud from 2015.