NEWS
09/01/2018 10:28 SAST | Updated 09/01/2018 10:28 SAST

European Central Bank Sells Steinhoff's Bond

They potentially suffered a loss of up to 55 percent on that investment.

Bloomberg via Getty Images

The European Central Bank (ECB) has sold its bonds of embattled global retailer Steinhoff, potentially suffering a loss of up to 55 percent on that investment, reported Moneyweb.

Steinhoff, which owns more than 40 multinational retail brands including Conforama, Mattress Firm and Poundland, revealed "accounting irregularities" last month along with the immediate departure of its chief executive.

Its latest bond was worth as little as 45 percent of the value at which it was issued late last July -- when the ECB bought it as part of its stimulus programme.

But the credit, which was still part of the ECB's holdings on January 2, no longer featured on a list published on Monday.

More than $10-billion [~R124-billion] has been wiped off Steinhoff's market value following the disclosure of the scandal that claimed the heads of CEO Markus Jooste and chairman Christo Wiese.