Steinhoff shares plummet after it admits ‘accounting irregularities’

Shares in Steinhoff International plummeted by as being much as 68% in Frankfurt following its CEO resigned and the business said it had been investigating accounting irregularities.

The global retailer operates a large number of stores across Europe, THE UNITED STATES and Australia. Its holdings involve Sleepy’s owner Mattress Company in the U.S. and Poundland in the U.K.

The dramatic sell-away was triggered by the announcement that chief executive Markus Jooste had resigned and “accounting irregularities requiring further investigation” had been uncovered.

The firm, that was scheduled to create its annual report on Wednesday, said it could release the results “when it’s able to do so.”

It said it could also investigate whether previous financial effects need to be corrected.

Steinhoff, that was already facing a criminal and tax investigation in Germany, said that it again approached PwC about conducting an independent investigation into it has the accounting issues.

The firm’s marketplace value on Tuesday had been roughly €13 billion ($15.4 billion).

The fallout spread quickly.

Steinhoff spun off its Africa organization earlier this year, but retains a majority stake in the company. Its inventory tumbled by as very much as 29% in Johannesburg.

Steinhoff reminded shareholders in a statement that it “includes a number of top quality profitable businesses all over the world” and urged them to “exercise caution.”

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