From Home Furnishing Business
Report: Amid Stock Collapse, Steinhoff May Sell Retail Assets
Steinhoff International, (FRANKFURT: SNH) the South African furniture and retail conglomerate whose stock price collapsed last week in the wake of an accounting scandal, may have to sell some of its prized assets – including Mattress Firm – in order to make debt payments that are due in March, according to a Bloomberg News report.
The report noted that Steinhoff’s stock price has fallen more than 80% on the Frankfurt Stock Exchange since CEO Markus Jooste resigned last week and the company admitted it was investigating “accounting irregularities.”
Steinhoff acknowledged that it may have to sell as much as $1 billion in assets, but didn’t provide specifics, according to Bloomberg.
Steinhoff completed its purchase of Mattress Firm in September in a deal valued at $3.8 billion, including net debt. It was the company’s first venture in North American Market.
Earlier this year, Steinhoff also acquired a majority stake in U.S. mattress producer Sherwood Bedding.
To read the Bloomberg story, click here.