Steinhoff’s 1st major setback

Steinhoff International lost a case against a former business partner related to how it reported financials for 2016, the first major legal setback for the global retailer as it battles an accounting scandal.

It should amend its accounts for that year, the Amsterdam Enterprise Chamber ruled on Monday, in a case brought by Andreas Seifert’s OM Handels and MW Handels businesses. The lawsuit pre-dates the reporting by Steinhoff of financial wrongdoing.

OM had accused Steinhoff of committing false accounting by not acknowledging its shareholdings in POCO Einrichtungsmarkte GmbH, a German furniture retailer. It’s one of three European cases Seifert’s businesses have brought against Steinhoff, which reported wider financial wrongdoing in early December.

Steinhoff has already said it needs to restate 2016 accounts alongside financials for 2015 and 2017. It’s being investigated by regulators and courts in various jurisdictions.

The retailer was told by the Dutch Enterprise chamber to amend its reporting of POCO to reflect that it has a 50% controlling interest instead of 100%, Steinhoff stated.

The company said it’s studying the judgment and whether there are grounds to appeal, while considering the impact.– Bloomberg

Steinhoff has been accused of committing false accounting by not acknowledging OM Handels and MW Handels shareholding in a German furniture retailer.