Former CEO Jooste ‘virtually radioactive’
THAT Steinhoff is no longer the global powerhouse it was a week ago goes without saying, but in addition to the financial fallout is the likely shattering of decadesrelationships, judging from the stunned responses of those who know its former CEO, Markus Jooste.
Though he is virtually radioactive right now, Jooste built a strong, tight and loyal team around him, with many of his executives having worked with him for decades. He also has loyal, long-standing friends through business and horse racing.
“I’ve known Markus for close to 30 years, and I have known him as a man of absolute integrity and a guy that is totally trustworthy,” said David Sussman, who founded the J D Group and left as executive chairman.
“He’s a very competitive guy. In my opinion, I would not have expected him to do anything that is against the law… It is a heartbreaking event that has affected many. Hopefully the investigations reveal it is not as dire as the market is expecting.”
Sussman got to know Jooste when the J D Group was GommaGomma’s biggest customer. Years later, Steinhoff bought out the JD Group, which effectively salvaged the ailing company.
Sussman questions why more investigation was not done earlier if there were so many rumours about the company.
While markets digest the developments at the furniture maker and retailer in the weeks to come, and wonder whether it has a future, it is the supposed genius of Jooste that has stirred much interest.
Jooste, who has been called the Robin Hood of Epsom [Downs Racecourse in England], seems to have made most of his business deals in the racecourse stands.
Central to Jooste’s rise has been his relationship with retail tycoon Christo Wiese.
Their friendship grew to a point where Jooste became the “heir apparent” to Wiese. Some say the two had an almost fatherson relationship.
Independent analyst Syd Vianello said the trust between the two was now broken, which was why Jooste was out.
Steinhoff expanded to five continents across 30 countries, with many brands.
Since the dramatic fall of its share price this week, the nerves of corporate South Africa have been shot. — DDC