Expansion
In subsequent years, Steinhoff acquisitions included an £86 million investment in the United Kingdom's Homestyle Group, in 2005; and, in 2011, a $1.2 billion investment in French Conforama, Europe's second largest retailer of home furnishings, with over 200 stores in France, Spain, Switzerland, Portugal, Luxembourg, Italy and Croatia; and, in 2013, the acquisition of Austrian home retailer Kika-Leiner.[6] In 2015, Steinhoff acquired Pepkor, a South African investment and holding company focused on low-end retail; the $5.7 billion cash-and-share deal made Christo Wiese Steinhoff's largest shareholder and chairman.[6][7]
In December 2015, Steinhoff International moved its primary listing from the Johannesburg Stock Exchange to the Frankfurt Stock Exchange, and founded a new Dutch holding company, Steinhoff International Holdings NV, based in Amsterdam.[8] This move reflected Steinhoff's shift from its traditional markets, in the Indian Ocean basin, to the European market.[8] The management remained in South Africa. As of May 2020, Steinhoff International Holdings NV remained headquartered in Amsterdam.[9]
In March 2016, Steinhoff was a member of MDAX with capitalization of over €20 billion but had a low trading volume.[10]
In July 2016, UK discount retail chain Poundland accepted Steinhoff's takeover offer of £597 million[11] which was then increased by Steinhoff to £610 million in August 2016.[12] The takeover received shareholder approval in September 2016.[13]
As of August 2016, Steinhoff held retailing activities in 30 countries, counting 6,500 retail outlets belonging to 40 different brands, and employing about 90,000 employees.[1] 60 per cent of the company's revenue, and two-thirds of its benefits, were made in Europe.[6]
In August 2016, Steinhoff announced its plan to purchase the United States-based Mattress Firm for $3.8 billion.[14] In February 2017, Steinhoff and South African retail giant Shoprite called off a proposed merger.[15]
In 2017, Mattress Firm split from its supplier Tempur Sealy.[16] In October 2018, Mattress Firm filed for bankruptcy[16][17] but emerged from Chapter 11 bankruptcy 2 months later after financial restructuring with support from AlixPartners.[18][19]
Debt problems
More significantly, in the aftermath of a major accounting scandal in 2017–2019, Steinhoff faced significant debts – $10 billion worth[20] – and possible further liabilities due to civil claims against it, even as its creditors withdrew their credit facilities.[21] Among the casualties was a consortium of lenders, including Japanese bank Nomura and a range of U.S. institutions, which had extended a $1.9 billion margin loan to Steinhoff.[22] Nomura confirmed that it had booked an unrealised loss of 14 billion yen ($128 million). In 2018, Steinhoff negotiated with its creditors a three-year reprieve on debt repayment.[23]
On 25 April 2018, Extreme Digital, a Hungarian e commerce firm acquired by Steinhoff in October 2015, was resold to their founders Balázs Várkonyi and Gyula Kelemen through their buying back shares.[24]
