Steinhoff expects advisory fees to fall after R3bn spend in 2019
Embattled retail group Steinhoff International said on Wednesday it was making every effort to reduce advisory fees in its 2020 financial year, as it continues to battle the fallout from its accounting scandal.
The group spent €158m (R3bn) in its year to end-September on advisory fees, but said it had made progress in restructuring the group after it uncovered a €6.5bn (about R110bn) hole in its accounts in 2017.
This caused a share collapse and multiple lawsuits from former business partners and aggrieved shareholders, including former chair Christo Wiese.
The group said on Wednesday that advisory fees were expected to fall in 2020, but legal advisory fees are expected to remain high in the period ahead as it attempts “to resolve and deal with outstanding litigation and seek redress against former executives and related parties”.
Steinhoff said it continued to focus heavily on litigation, which was a major issue facing the company, and was working to resolve outstanding claims against the group and claims it may have against third parties.