Probe scuppers Steinhoff talks to buy another chain

The investigation by German police into Steinhoff International Holdings NV ended negotiations in December by its Steinhoff Africa Retail subsidiary to take over another SA-based footwear chain, according to a source. No comment was available from either side last week.
       Reports in various financial media have suggested that the immediate problem facing all Steinhoff subsidiaries is access to operating capital, irrespective of their underlying strength.
       Steinhoff Africa Retail - the Star Group - includes apparel chains Ackermans, Dunns, John Craig, Pep, Pep Africa, Refinery, Shoe City and Tekkie Town, along with furniture, hardware, household goods, IT and music chains. It was listed on the Johannesburg Stock Exchange last September when Steinhoff International sold 23.19% of the shares for R16 billion.
       A request to Ian Nel of investor relations at the Star Group's head office for comment on the future of Steinhoff's apparel businesses, locally and internationally, was referred to investor relations at Steinhoff International. An unsigned reply read: "Please be advised that the information you request may be price sensitive and cannot be supplied unless it is published on SENS", and referred enquiries to http://www.steinhoffinternational.com/sens.php.
       A release on that site dated January 4 and headlined 'Steinhoff liquidity update and management board changes' included this statement:
Liquidity update: The interaction with Steinhoff’s global banking and financing partners following the meetings with lenders in London on 19 December 2017 and with South African lenders on the 21st of December are ongoing. While the Group has achieved some degree of stabilisation in its operating businesses, significant near-term liquidity is still required in certain of the business units. The Supervisory and Management Boards of the Company remain committed to work with its lenders and other finance providers in finding solutions and to return liquidity to the Group in order to stabilise the affected underlying operations and will update the market in due course.