Poundland owner in crisis after revealing ‘accounting irregularities’

Poundland’s owner Steinhoff was hit by a triple whammy as its shares crashed by 63% after its long-serving chief executive resigned as it revealed accounting irregularities.

Steinhoff is a retail group with 40 brand in more than 30 countries. Its UK brands include Bensons for Beds and Harveys, while last year it bought Poundland for £610m after a protracted takeover.

But the South African group was already under pressure, with German tax authorities having been investigating its operations for two years.

However the announcement from Steinhoff that “new information has come to light today which relates to accounting irregularities requiring further investigation” replaced its expected publication of its latest financial figures.

Markus Jooste, who had run Steinhoff for nearly two decades, has left with immediate effect and owner Christo Wiese has stepped in. PwC has begun an independent investigation into the irregularities.

The markets reacted badly to the news despite Steinhoff reiterating it is a profitable business and urging its investors to “exercise caution”. Instead, investors took fright and its shares fell more than 60% in a day.

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