Steinhoff names new CEO as restructuring progresses. Commercial director Louis du Preez, who has been leading the restructuring

negotiations, will replace Danie van der Merwe, who steps down at the end of

the year.

Steinhoff has appointed commercial director Louis du Preez as its new

permanent CEO as it continues to restructure its business and deal with the

fallout after revealing massive accounting fraud close to a year ago. Du

Preez, who has been leading restructuring negotiations together with chief

financial officer Philip Dieperink, will replace Danie van der Merwe, who is

stepping down at the end of the year. Van der Merve replaced Markus Jooste,

who quit last December as new of the scandal broke.

In an update yesterday, Steinhoff said it was making good progress with the

restructuring. It planned to apply for a company voluntary arrangement (CVA)

for Steinhoff Europe and a consent solicitation process in respect of

Steinhoff Finance Holding's convertible bonds. It said these processes related

to the restructuring of the debt of the two units and were not expected to

have any impact on its operating business, their landlords or trade creditors.

Meanwhile, the US Bankruptcy Court approved the Chapter 11 bankruptcy plan of

US subsidiary Mattress Firm last Friday, it said.

Importantly, the implementation of these necessary measures to restructure our

debt, will enable management to focus fully on driving the performance of our

operating businesses," chairperson Heather Sonn said. "He (Du Preez) is the

ideal candidate to lead the Company through the final stages of the

restructuring and into the next phase of its development and his designation

as CEO will provide important continuity for the group and all of its

stakeholders."

The retailer is due to release its 2017 financial statements by the end of the

year, followed by its 2018 accounts in January. PwC is also expected to

release the findings of an investigation into the accounting irregularities

next month.

Steinhoff's shares rose as much as 17% yesterday before closing 8.2% higher at

1.98 rand.

Steinhoff has announced its commercial director Louis du Preez will take

over as the new CEO.

-- Open News (@OpenNewsSA) November 19, 2018

JSE All Share top gainer/loser for the day:

Steinhoff Internation +8.20%

Brait SE -5.95%

(Source: SS/Bloomberg)

-- Simonis Storm (@SimonisStorm) November 19, 2018