NEWS
21/12/2017 09:00 SAST | Updated 21/12/2017 09:01 SAST

Steinhoff Shares Reach New Low As Investors Sue

Steinhoff met with lenders this week as its shares hit a 17 year low.

Mike Hutchings / Reuters
Shoprite Holdings Chairman Christo Wiese, whose companies also include Steinhoff International, speaks as Shoprite reported it's results in Cape Town, South Africa, February 21, 2017.

Steinhoff shares have plummeted even further following a massive lawsuit against the company, brought by its shareholders in Germany.

Business Day reported that the investors want to recover the funds they lost when the company lost over 90% of its share price over two weeks, following news that it was engaged in so-called "accounting irregularities".

The suit was reportedly filed in Frankfurt, where Steinhoff moved its primary listing from Johannesburg in 2015, on Tuesday.

It is likely to be the first of several suits by investors.

A Brussels-based shareholder advisory group, Deminor Recovery Services, is also reportedly inviting shareholders to register for a possible case against Steinhoff.

Steinhoff reportedly met with lenders in London on Tuesday, where it apparently said the total amount of accounting irregularities was not known yet.

Steinhoff's CEO Markus Jooste resigned two weeks ago over reports that the company had committed accounting fraud. Its chairperson, Christo Wiese, stepped in to lead the company on an interim basis, but also resigned, after the company started to weigh up selling its stock.

Steinhoff has appointed PwC to investigate the irregularities.

Its stock price continued to crash after Tuesday's meeting, Fin24 reported, reaching levels last seen 17 years ago. A briefing overview document by Steinhoff reportedly reveals that the company has debt worth R161-billion.