Mattress Firm Parent Steinhoff Will Revise 2016 Financials

December 14, 2017  by Larry Thomas in Economic News, Industry   

In a statement, Steinhoff said the early results of an investigation of the company’s finances indicated the 2016 financial statements “can no longer be relied upon.”

The company, who also owns a number of furniture manufacturing and retailing entities in Europe and Africa, had planned to release its results for fiscal 2017 last week, but delayed that release indefinitely because of newly discovered “accounting irregularities.”

In the wake of the scandal, CEO Markus Jooste resigned, and was replaced on an interim basis by Christo Wiese, chairman of Steinhoff’s supervisory board. The company’s shares, which are listed on the Frankfurt Stock Exchange, have fallen more than 80% in the past week.

The announcement regarding the restatement of fiscal 2016 financial statements also said the board had formed an independent committee to further probe “the validity and recoverability of certain Steinhoff Europe balance sheet assets.”

The accounting firm PricewaterhouseCoopers has been retained to conduct an investigation of the company’s finances.

Steinhoff completed its $3.8 billion acquisition of Mattress Firm in September 2016, marking the company’s first venture in the North American market.

In May 2017, Steinhoff acquired majority interest in Sherwood Bedding, a Florida-based mattress producer that makes private-label bedding for a number of major retailers.