From Home Furnishing Business
Mattress Firm Parent to Issue Revised Financials for 2015, 2016
Steinhoff International, the troubled parent company of Mattress Firm and a number of other furniture retailers and manufacturers in Europe, Asia and Africa, said an investigation of its finances revealed the company will have to restate its financial statements from the 2015 and 2016 fiscal years.
In addition, a financial statement for the 2017 fiscal year, which ended in September, has been delayed indefinitely because of the probe, the company said.
“The internal review of the accounting irregularities by the management team and the PwC investigation are progressing and, whilst all involved are working as expeditiously as possible, the timeline for completion remains uncertain,” Steinhoff said in a statement.
The company didn’t say what type of financial irregularities have been uncovered.
Steinhoff’s longtime president and board chairman both resigned in December shortly after the investigation of financial irregularities was disclosed. The company’s stock has lost more than 80% of its value on the Frankfurt Stock Exchange since the initial announcement.
Mattress Firm, which was acquired by Steinhoff in 2016, recently obtained a $225 million revolving credit line to meet its liquidity needs for the coming year.
The Mattress Firm acquisition was Steinhoff’s first foray into the North American market, but in 2017, the company also acquired majority interest in Sherwood Bedding, a Florida-based mattress producer.