Steinhoff’s La Grange resigns

STEINHOFF finance chief Ben la Grange has stepped down to focus on shoring up liquidity within the beleaguered retailer, which said “significant near-term liquidity” was still needed.

Steinhoff said La Grange had vacated his role “to focus on the preservation and procurement of liquidity” and to finalise the group’s audited 2017 financial statements, which have been delayed due to “accounting irregularities”.

The global furniture retailer’s credit lines are being cancelled or withdrawn, and it still cannot say when its 2017 financials will be available.

Philip Dieperink will replace La Grange as acting chief financial officer, pending his formal appointment to the board. Dieperink has been with Steinhoff in various finance positions since 2001 and will remain the chief financial officer of Steinhoff UK.

The group said it was looking for a “chief restructuring officer” in the form of an external independent debt-restructuring expert.

Further, Johan Geldenhuys, who has been with the group since 2010, will join the executive committee as head of treasury.

Steinhoff said its talks with funding partners were continuing.

“While the group has achieved some degree of stabilisation in its operating businesses, significant near-term liquidity is still required in certain of the business units.”

Prior to the announcement, shares in Steinhoff closed 25.2% higher at R8.60 following reports that its European business had borrowed £180million (R3-billion) from a US hedge fund. — DDC