UPDATE 1-Steinhoff flags pandemic hit, scraps Conforama Iberia sale
(Adds detail on Conforama France, background)
June 9 (Reuters) - South African retailer Steinhoff
on Tuesday warned of a "material" hit to revenue in 2020 and
said its planned disposal of home furnishings chain Conforama
Iberia had lapsed due to the coronavirus crisis.
The company, which has deferred the publication of its
interim results to July, also said South African authorities
have engaged PwC to assist with a criminal investigation into
accounting fraud at Steinhoff.
Steinhoff also said the position of its Conforama business
in France remained uncertain, having failed to secure state
funding in the country.
The company signed a deal to sell its Iberian business in
February, but the completion of the deal was disrupted by the
COVID-19 pandemic.
"Litigation remains a significant challenge," said
Steinhoff, which has been reeling under pressure from an
accounting scandal dating back about two years.
"The essential actions to reduce costs and optimise
liquidity in response to COVID-19 are also placing additional
demands on the various finance teams ... and this has also had
a direct impact on the financial reporting timelines," it said.
(Reporting by Yadarisa Shabong in Bengaluru; Editing by Aditya
Soni)
((Yadarisa.Shabong@thomsonreuters.com; +919742735150; Reuters
Messaging: Twitter: twitter.com/Yadarisa))
Rank : negative