Poundland faces uncertain future as crisis grips owner

Discount retailer Poundland faces an uncertain future as the crisis at its South African parent company deepens.

Steinhoff’s chairman Christo Wiese has resigned as chairman, just days after the now-former billionaire stepped in as interim chief executive following the departure of Markus Wooste.

Wooste left when Steinhoff announced an investigation into its accounts and in an update it said it would need to restate its financial accounts for 2016 as they “could no longer be relied upon”.

Steinhodd’s share price crashed 80% in three days as the crisis unfolded.

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

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.

Insurer Atradius has reduced its cover on Poundland’s stock, although the impact of that change is not expected to affect Christmas trading.

Poundland has described the move by Atradius as “irrational” and reiterated that it was “profitable, cash generating and trading very strongly”.