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Steinhoff APAC secures funding

Ford has reiterated Steinhoff’s local arm operates independently of its parent company

Steinhoff Asia Pacific (APAC) has secured funding from its existing banking partners with a $300m banking facility provided by its existing syndicate of six local and international banks.

The new banking facility has been struck on normal commercial terms based on the strong financial performance of Steinhoff APAC in 2017 and will secure its funding requirements for the next 12 months.

Steinhoff’s local arm operates a number of retail brands in Australia and New Zealand including Freedom, Fantastic Furniture, Best & Less, Snooze, Harris Scarfe, Plush, OMF and Postie.

Steinhoff APAC recently filed its annual report for the period 8 June 2016 to 1 October 2017.

The business reported revenues of $2.3 billion, net assets of $411.4 million and cash from operating activities (before interest and tax payments) of $106.0m.

“This is a very positive outcome for all stakeholders in our business, comfortably securing Steinhoff Asia Pacific’s funding requirements,” said Steinhoff Asia Pacific Group CEO, Michael Ford.

“It reflects the confidence that our existing banking partners share with us about the firm financial and strategic footing our leading portfolio of brands occupy in our Asia Pacific markets.”

“We have carefully and methodically navigated the recent circumstances involving our parent group and maintained business as usual through the peak New Year trading period. Pleasingly, we have locked in funding without any unplanned asset sales or the loss of any jobs, preserving our position as a leading retail organisation.”

Ford said the company’s staff and suppliers had been “extremely supportive” throughout the last two months, while parent company Steinhoff International continues to restructure and battle investigations into “accounting irregularities”.

“This funding package allows our business to continue to focus on delivering our plan for growth,” said Ford.

Steinhoff also reiterated that the funding facility secured “underscores the fact that Steinhoff Asia Pacific continues to operate independently of its parent company, Steinhoff International NV, with all working capital requirements met locally.”

Meanwhile the South African-based, Frankfurt-listed parent company has recently appointed ex-KPMG executive Richard Heis as its chief restructuring officer, as the investigation into South African-based, Frankfurt-listed retailer’s “accounting irregularities” continues.

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