Christo Wiese SARS

JOHANNESBURG, SOUTH AFRICA – JUNE 12: Billionare businessman Christo Wiese on June 12, 2012 in Johannesburg, South Africa. (Photo by Gallo Images / Financial Mail / Hetty Zantman)

Christo Wiese quits Steinhoff board as share price continues to plummet

His interim leadership lasted merely a week

Christo Wiese SARS

JOHANNESBURG, SOUTH AFRICA – JUNE 12: Billionare businessman Christo Wiese on June 12, 2012 in Johannesburg, South Africa. (Photo by Gallo Images / Financial Mail / Hetty Zantman)

South African billionaire Christo Wiese has quit the Steinhoff board, following the financial scandal that has engulfed the retailer.

It’s been an abrupt and chaotic fall from grace for one of SA’s biggest multi-national corporations. Former CEO Markus Jooste was forced to step down last week, after admitting to ‘accounting regularities’. Since then, Steinhoff has been in freefall.

Steinhoff share price

At the close of business on Thursday 14th December, Steinhoff was worth around R9 per share. That’s a massive drop from the R46 it was worth at the beginning of last week, and the company has seen about R160bn wiped off its market value.

Wiese himself has suffered quite considerably. The largest shareholder in the company, which owns brands like Ackerman’s and Poundland, is reported to have lost roughly R30bn himself since the crisis began.

Up to 130,000 employees work for the Steinhoff network, and the instability at the top is jeopardising those lower down the chain. What is more, the government department responsible for civil servants’ pensions (PIC) has an 8.5% stake invested in the fallen giant, sparking fears that retirement funds could soon take a hit.

Christo Wiese and his relation to Steinhoff

Christo Wiese is well-known for establishing the retail heavyweight Pepkor over the last few decades. They became Africa’s biggest retailer, before he sold up to Markus Jooste. Initially, the move benefited all parties, and they were able to build themselves up further across the USA and Europe.

However, his metaphorical deal with the devil has had far-reaching, catastrophic consequences. Also part of their board was Christo’s son, Jacob. He too resigned alongside his father.

Steinhoff may remain rudderless, but Heather Sonn has since taken over the role of acting chairperson. She’s a member of the board and its independent subcommittee, but faces one of the more unenviable tasks in business right now.