Steinhoff Faces Legal Claims of More Than $10 Billion

Steinhoff International, battling the fallout from a massive accounting fraud, faces legal claims amounting to more than 9 billion euros ($10.10 billion), the South African retailer’s annual report showed on Wednesday, Reuters reported. The report for the year ended September 2019 listed numerous court cases with claimants seeking more than 9 billion euros in payments or damages. It also included Steinhoff’s annual results, with the retailer’s full-year loss widening to 1.8 billion euros from a 1.2 billion loss a year earlier. Steinhoff’s problems began in December 2017 when the company revealed holes in its accounts, shocking investors in the international retail group, which were the initial signs of an accounting fraud since estimated to total $7 billion. After a debt restructuring last year, the company said that managing its litigation risks - the second phase of its plan to return to normality - was now its focus, with these presenting a “significant challenge.” Read more