INTERNATIONAL homeware group Steinhoff International's share price plunged 12.22 percent on the JSE yesterday afternoon, after the retailer had taken to the UK courts to sue some of former chief executive Marcus Jooste's co-conspirators.
The price of the still heavily indebted group, however, is still well up from only R2.74 a year ago, in stark contrast to its listed peers internationally, with for instance, Wayfair in the US down 47.50 percent over a year, Hanssem from Korea down 34.6 percent and Basset Furniture Industries down 23 percent over 12 months.
Wayfair said in its last quarterly figures that as various geographies reopened post-pandemic, consumers have shifted some spend towards travel and entertainment and from e-commerce towards brick and mortar.
Tile group Italtile last week said the surge in spending on the home during the pandemic has substantially subsided, as Covid restrictions eased.
Heavily indebted Steinhoff reported a significantly improved performance for the year ended September 30, 2021 with a 14 percent increase in revenue from continuing operations to €9.19 billion (R157.5bn); €8.03bn in 2020; and €8.39bn in 2019.
Steinhoff shares fell yesterday following reports that the retailer was suing British businessman Malcolm King, his son Nicholas, and their company Formal Holdings in the UK for around R1.6bn.
Jooste allegedly used the Kings and their company as part of a fraudulent scheme to defraud Steinhoff via a series of sham loan agreements, which the Kings have denied.
Steinhoff had warned in its annual report released last month, that it may seek to recover some of the funds it had lost through the fraud through litigation. This followed the group's recent conclusion of agreements for a R24bn global settlement scheme with previous litigants against it.
Jooste, according to a News24 report yesterday, had directed that funds be paid from companies in the Steinhoff stable as fake loans to a Swiss company called Fihag, while Jooste also then allegedly helped direct how these funds should be paid on from Fihag to Formal Holdings.
Steinhoff plans to hold its annual general meeting on March 25.
In late 2017, Steinhoff lost some R200bn in shareholder value due to accounting irregularities and Jooste's sudden resignation and four years later, the share price is still lower by some 93 percent.
edward.west@inl.co.za
BUSINESS REPORT ONLINE