Steinhoff has added former banking and insurance heavyweights to its board following the resignation of its CEO, Markus Jooste on Tuesday over alleged accounting irregularities.
A board subcommittee, composed solely of independent non-executive directors and
headed by Johan van Zyl, former CEO of insurance company Sanlam and Co-CEO of ARC has been constituted to bolster the independent governance of the group, Steinhoff said in a Stock Exchange News Service statement (SENS). The other members are Dr Steve Booysen, former ABSA CEO and Heather Sonn, former investment banker.
One wonders if this was aimed to assist in negotiations with lenders?
Also on SENS it said:
– Its audit committee is working with its statutory auditors, Deloitte to facilitate the
release of its audited financial statements;
– PWC has been appointed as forensic investigators and commenced investigations; and trading in the underlying businesses across the globe continues uninterrupted particularly in the pre-Christmas period.
– Moelis & Company and AlixPartners have been appointed as independent financial advisor and operational advisor respectively with immediate effect. Moelis will support and advise on the Group’s discussions with its lenders, while AlixPartners will assist on liquidity management and operational measures.
– The Group is currently fully focused on safeguarding operational liquidity to continue funding existing operations throughout its various subsidiaries. In this context, the Group is asking for and requires continued support in relation to existing facilities from all its lenders to achieve an immediate stabilisation of the Group’s financing.
– The retailer will host a lender’s meeting to provide an update on its ongoing
operational and financial situation. An agenda for the meeting will be circulated ahead of 19
– Shareholders and other investors in the company are advised to exercise caution when
dealing in the securities of the group.