Steinhoff to sell and lease back European properties
This sale is Steinhoff’s attempt at reducing debt and paying back creditors.
Steinhoff has announced plans to sell off properties of its European subsidiary, Conforama Iberia, which has entered into an irrevocable offer of €107 million (R1.9 billion). The sale will help Steinhoff to cut debt and reimburse creditors.
Steinhoff’s EBITDA fell by 21 percent to €578 million euros (R10.4 billion) in the year ending September 30, from €733 million euros (R13.2 billion) in 2019.
Steinhoff International is a South African German-Dutch international retail holding company that is dual listed in Germany and South Africa. Steinhoff deals mainly in furniture and household goods, and operates in Europe, Africa, Asia, the US, Australia and New Zealand. In recent years, Steinhoff has been selling off its assets to help decrease its total financial leverage after it agreed to pay around $1 billion (R15 billion) to settle outstanding legal claims following a massive accounting fraud.
Conforama Iberia is a furniture and hardware retailer that operates an extensive network across Europe, with stores in Spain, Portugal, Italy, Croatia and Serbia. Conforama’s core product lines comprise furniture, decoration, and a range of homeware appliances and electronic goods, employing a multi-style product strategy.