The scandal almost collapsed the company, wiping out more than US$13.87 billion of shareholder equity. steinhoff
A company sign stands above the Steinhoff International Holdings NV company headquarters in Stellenbosch, South Africa.
The owner of Mattress Firm Inc in the United States, the Fantastic chains in Australia and Conforama in France said operating loss came in at €3.7 billion in the year ended September 2017 compared with profit of €278 million in the restated 2016 figures. An investigation by auditor PwC released in March found that eight people, including former Steinhoff executives, were involved in a complex scheme where potential intercompany transactions worth €6.5 billion were fraudulently recorded as external income to prop up profits and hide costs in money-losing subsidiaries.
The 2017 results also showed the value of Steinhoff assets was around €17.5 billion, or nearly half the valuation reported a year earlier. The 2016 figure – €32.2 billion – had to restated to €21 billion to reflect the impact of writedowns stemming mainly from the so-called “goodwill”, the intangible asset generated when one company buys another for more than the value of its hard assets.
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