Steinhoff names a new chief executive

Steinhoff International has named Louis du Preez as chief executive, further severing ties between the global retailer and the rule of former boss Markus Jooste, who quit last year amid an accounting scandal.

Commercial director Du Preez replaces Danie van der Merwe, a Steinhoff director for almost 20 years who took the top job on an acting basis after Jooste resigned.

Both men have been pivotal in managing Steinhoff as it battled for survival over the past 12 months, with Du Preez, in particular, credited with leading the South African company’s lifesaving restructuring of about €10 billion (R160 billion) of debt.

The 49-year-old’s relationship with creditors and knowledge of Steinhoff’s extensive global operations make him an “ideal candidate” to oversee the next stage of development, chairperson Heather Sonn said in a statement.

Van der Merwe, 60, will stay on in an assistance role until December 1, 2019.

Repaid loan

While Van der Merwe has repeatedly denied involvement in the accounting wrongdoing that caused the crisis, he has said he will step down if implicated in a report into the company’s finances by PwC, which may be released as early as this month.

In May, Steinhoff said the acting CEO had repaid a R26.4 million loan backed by company shares that he took out a week before the retailer’s stock collapsed, while he’s been listed as a director at firms linked to Jooste and certain third-party transactions with Steinhoff.

Having bought time with creditors, Du Preez will now attempt to grow Steinhoff chains such as Conforama in France and Poundland in the UK and shore up the share price.

Much will depend on the PwC report and the outcome of a string of lawsuits, including a R59 billion claim by former chair and ex-biggest shareholder Christo Wiese.

Boardroom clear out

Other Steinhoff departures include Ben la Grange, who stepped down as CFO, while four other supervisory board members, including founder Bruno Steinhoff, took early retirement.

Dirk Schreiber, a German national who was head of finance in Europe, resigned from the boards of two key units in July.

At Steinhoff’s AGM in April, Sonn said the company wants to “uncover the truth, show the world what has happened, prosecute any wrongdoing and reinstate trust”. – Bloomberg

Moneyweb

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Until now, the courts have allowed repossessed homes to be sold at sheriffs’ auctions without a reserve price, resulting in homes selling for a fraction of their market value and leaving the defaulting borrower with a large outstanding bank debt.

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