Steinhoff International Holdings NV said an investigation into the overstatement of profit and treatment of off-balance-sheet entities will result in further material impairments beyond the 6 billion euros ($7.2 billion) announced in December.
The South African retailer has received feedback from auditors at PwC in respect of the early months of their forensic probe and the company is now also investigating the roles of those previously at the helm, Steinhoff said in a statement Thursday. That’s likely to include former Chief Executive Officer Markus Jooste, who quit when the owner of Conforama in France and Mattress Firm in the U.S. first reported accounting irregularities Dec. 5.
Steinhoff is being investigated by various parties after the stock plunged more than 96 percent and is facing at least two class action lawsuits. It’s also being sued by former Chairman Christo Wiese for 59 billion rand ($4.8 billion), while businessman GT Ferreira is seeking 100 million euros. Parties related to Tekkie Town, a South African shoe retailer bought by Steinhoff in 2016, are claiming 120 million euros.
The shares plunged more than 6 percent in Frankfurt to a new record low of 0.12 euros.
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