Steinhoff shares fall 61% on opening after CEO resigns amid 'irregularities'

Steinhoff shares fall 61% on opening after CEO resigns amid 'irregularities'

The company said its Supervisory Board, akin to a board of directors for US -based companies, has hired the accounting firm PWC to conduct an independent investigation of its finances.

The company has asked PWC to conduct an independent investigation into the matter.

As recently as November 3, Wiese bought 2 million Steinhoff shares at more than three times the price at which they were trading in Johannesburg on Wednesday.

Steinhoff International's Supervisory Board has appointed chairman Christo Wiese as executive chairman on a temporary basis, while Pieter Erasmus, the former CEO of Pepkor Group, has joined Wiese in an executive advisory capacity "to assist with managing the group's various retail interests around the world", the company noted.

While the nature of its accounting investigation was not disclosed, it had already been known that it was facing a tax probe in Germany.

The chief executive's resignation will take effect immediately showing how serious it is.

More news: Oklahoma RB Rodney Anderson facing rape allegation

Jooste was at the helm of the company for almost 20 years and oversaw its expansion to one of the world's largest household goods retailers.

Steinhoff shares traded 64% lower at €1.08 as of 16:02 in Frankfurt. According to the news agency Reuters, investors are now concerned that Wiese may be forced to sell shares he bought past year with borrowed money, which would depress Steinhoff's stock further. Steinhoff had been due to release its fiscal 2017 earnings report on Wednesday, but said the results will come out when it is "in a position to do so".

The company also dropped a January 31, 2018 deadline for publishing its audited 2017 consolidated financial statements, saying it would only do so "when it is in a position to do so".

Wiese, 76, and Jooste didn't immediately respond to calls to their mobile phones.

The investigation could result in prior years' financial statements needing to be adjusted. [L8N1O63XL] A spokeswoman for Deloitte Accountants B.V., which signed off Steinhoff's 2016 results, declined immediate comment.

Related Articles

  • Take a look inside the world's largest Starbucks

    Take a look inside the world's largest Starbucks

    China is Starbucks fasting growing market with a store opening every 15 hours with more than 3,000 stores across 136 cities. Same-store sales gained 8 percent in the country during the most recent quarter, compared with 2 percent globally.
    Tiger Woods seemingly healthy again, but too early to predict future glory

    Tiger Woods seemingly healthy again, but too early to predict future glory

    Fowler finished four shots in front of fellow American Charley Hoffman, the overnight leader by five strokes who carded a final-round 72.
    Director Bryan Singer fired from upcoming Queen biopic

    Director Bryan Singer fired from upcoming Queen biopic

    Bryan Singer has just been fired as the director of the upcoming Queen biopic Bohemian Rhapsody , The Hollywood Reporter confirms. As things stand, Bohemian Rhapsody will light up theaters on December 25th, 2018, and we'll notify you if and when that changes.
  • Senate confirms new DHS chief

    Senate confirms new DHS chief

    But Nielsen told the Senate's homeland security panel that "there is no need for a wall from sea to shining sea". She previously was the White House's deputy chief of staff where she was widely considered a close Kelly ally.
    Does Trump Have It Out for Mitt Romney?

    Does Trump Have It Out for Mitt Romney?

    But the president's reciprocal strong public support for Hatch is not just a vote of confidence in the Utah senator. Asked by reporters whether he had encouraged Hatch to seek re-election, Trump answered , "Yes".
    LaVar Ball says he's withdrawing suspended son from UCLA

    LaVar Ball says he's withdrawing suspended son from UCLA

    LaVar Ball said that that the plan is still for LaMelo Ball - ESPN's seventh-ranked player in the class of 2019 - to go to UCLA . LiAngelo Ball is one of three UCLA basketball players who were indefinitely suspended following a shoplifting incident in China.
  • IPL: CSK, RR allowed to retain players

    IPL: CSK, RR allowed to retain players

    So, if a franchise does not to directly retain any player, it will be allowed a maximum of three RTMs at the auctions. The purse money has been by increased for each franchise from Rs. 66 crore to Rs. 80 crore by the council.
    National Football League  suspends Rob Gronkowski 1 game

    National Football League suspends Rob Gronkowski 1 game

    In the third quarter, Gronkowski was flagged for pass interference on a play with minimal contact. But, just through the frustration process, game of football emotions, just what happened".
    World's First Bitcoin Futures to Start Trading

    World's First Bitcoin Futures to Start Trading

    Bitstamp, GDAX, itBit and Kraken are the constituent exchanges that now contribute the pricing data for calculating the BRR. CME Group said trading would be available on its CME Globex electronic trading platform from 18 December.
  • Cyclone Ockhi causes heavy rains in Mumbai

    Cyclone Ockhi causes heavy rains in Mumbai

    Though Vaghela was supposed to reach Surat on Tuesday night, he dropped his plan due to the approaching cyclone. Schools in 16 villages in Ahmedabad will also stay closed on account of Cyclone Ockhi.
    Qualcomm make their move on Intel with Snapdragon on Windows

    Qualcomm make their move on Intel with Snapdragon on Windows

    Better yet, ASUS is pricing the new NovaGo at just $599 for the 4GB/64GB storage model while the 8GB/256GB storage model is $799. It wasn't just ASUS turning up to the Snapdragon 835-powered Windows 10 laptop party, but HP too with their new Envy x2 laptop.
    Ohio State or Alabama for final spot?

    Ohio State or Alabama for final spot?

    Ten of Wisconsin's wins this season have come by 14 or more points and it has not trailed in the fourth quarter all season. Wisconsin also is trying to extend its school record undefeated season and claim its first Big Ten title since 2012.