Steinhoff International
A South African-centered multinational retail holding company that expanded through furniture, household-goods, discount, and general merchandise chains before collapsing under a major accounting scandal.
Last updated August 31, 2026
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Overview
Steinhoff International was a multinational retail holding company whose corporate history connected a German furniture-trading business with a large South African and European retail portfolio. Bruno Steinhoff founded the original business in Westerstede, Germany, in 1964, sourcing furniture from communist countries in Eastern Europe and reselling it in Western markets. The company’s later strategy relied heavily on acquisitions, geographic diversification, and the creation of a broad portfolio of retail brands rather than on a single consumer-facing master brand. The group entered South Africa during the 1990s. It acquired a 35 percent interest in the South African furniture company Gommagomma in 1997, prepared a merger the following year, moved its headquarters to South Africa in 1998, and listed on the Johannesburg Stock Exchange. Bruno Steinhoff became executive chairman and Markus Jooste became managing director. Over the following decade, Steinhoff assembled interests across furniture, household goods, discount retail, automotive retail, and related investments. Its international expansion included the acquisition of a major interest in the United Kingdom’s Homestyle Group in 2005, a substantial investment in French furniture retailer Conforama in 2011, and the acquisition of Austrian home-retail group Kika-Leiner in 2013. The 2015 purchase of Pepkor, a South African investment and retail group focused on value-oriented consumers, was especially significant. The cash-and-share transaction made investor Christo Wiese Steinhoff’s largest shareholder and chairman, and gave the group a major platform in South African and European discount retail. Steinhoff reorganized its corporate structure in 2015 by establishing Steinhoff International Holdings NV in the Netherlands and moving its primary listing from Johannesburg to Frankfurt. At its peak, the group reported operations in roughly 30 countries, approximately 6,500 stores, about 40 brands, and around 90,000 employees. Its portfolio included Pep, Ackermans, Poundland, Dealz, Pepco, Conforama, Mattress Firm, Kika, and numerous furniture, bedding, electronics, building-supply, and general-merchandise chains. Although headquartered in Europe after the reorganization, management and important operational connections remained strongly associated with South Africa. The company’s growth model became unsustainable after accounting irregularities were exposed in 2017. Chief executive Markus Jooste resigned on 5 December 2017, and Steinhoff commissioned an independent forensic investigation by PwC. The investigation summary later described a pattern of fictitious or irregular transactions involving apparently independent counterparties that inflated reported profits and asset values by more than €6.5 billion between 2009 and 2017. The revelations destroyed investor confidence, caused a dramatic collapse in the share price, and left the group with very substantial debt and extensive civil litigation. Steinhoff subsequently pursued asset sales, creditor negotiations, portfolio simplification, and settlements with claimants. It sold or reduced interests in several businesses, including Conforama France, Bensons for Beds, Harveys, Relyon, Unitrans, and various financial and property investments. Creditors obtained significant ownership and economic rights in parts of the remaining portfolio. The group’s residual interests included stakes in Mattress Firm, Pepco Group, and Pepkor Holdings, as well as Greenlit Brands in Australia and New Zealand. Steinhoff was officially delisted in October 2023. Regulatory and legal investigations continued thereafter, including South African inquiries into possible market abuse and the conduct of additional individuals connected with historical financial statements.
History
Steinhoff began in 1964 when Bruno Steinhoff established a furniture-trading business in Westerstede, Germany. The company sourced furniture from communist countries in Eastern Europe and sold it in Western Europe. This cross-border sourcing model gave the business an early international orientation, although its main activity remained furniture. The group’s South African phase began in 1997, when Steinhoff acquired 35 percent of Gommagomma, a South African furniture company. The businesses prepared to merge, and Steinhoff moved its headquarters to South Africa in 1998. The relocation was associated with lower production costs and closer access to the company’s developing South African operations. Steinhoff listed on the Johannesburg Stock Exchange in the same year, with Bruno Steinhoff serving as executive chairman and Markus Jooste as managing director. During the 2000s and 2010s, Steinhoff pursued an aggressive acquisition strategy. It invested £86 million in the United Kingdom’s Homestyle Group in 2005, acquired a major position in French furniture retailer Conforama in 2011, and purchased Austrian home-retail group Kika-Leiner in 2013. In 2015, Steinhoff acquired Pepkor in a cash-and-share transaction valued at approximately $5.7 billion. Pepkor brought a large South African value-retail platform and made Christo Wiese the group’s largest shareholder and chairman. Steinhoff reorganized internationally in December 2015 by creating a Dutch holding company, Steinhoff International Holdings NV, and moving its primary listing from Johannesburg to Frankfurt. The restructuring reflected the group’s growing European focus, although substantial management and operational ties remained in South Africa. By 2016, Steinhoff reported activity in approximately 30 countries, around 6,500 stores, roughly 40 brands, and about 90,000 employees. Europe generated most of its revenue and a majority of its profits at that point. Expansion continued with the acquisition of Poundland in 2016 and the purchase of Mattress Firm in the United States, announced at a reported price of $3.8 billion. A proposed merger with South African retailer Shoprite was abandoned in 2017. Mattress Firm later entered Chapter 11 bankruptcy protection in 2018 and emerged after a financial restructuring. Steinhoff also had a long-running dispute with Andreas Seifert concerning ownership of the German discount furniture chain Poco. An Amsterdam court ruled in 2018 that Steinhoff’s accounts had to reflect Seifert’s claimed interest, and the parties later reached a settlement under which Seifert acquired a 50 percent stake. The decisive turning point came in December 2017, when accounting irregularities became public and Markus Jooste resigned as chief executive. Steinhoff appointed PwC to conduct a forensic investigation. Its 2019 summary reported that a small group of former Steinhoff executives and other individuals had structured fictitious or irregular transactions with apparently independent counterparties, inflating profits and asset values by more than €6.5 billion between 2009 and 2017. The company’s market value collapsed, creditors withdrew facilities, and the group faced billions of dollars in debt and extensive civil claims. Steinhoff responded through management changes, creditor standstill arrangements, asset sales, portfolio reductions, and legal settlements. Danie van der Merwe served as acting chief executive before Louis du Preez took the permanent role. The company replaced Deloitte with Mazars as auditor in 2019. It sold or reduced interests in businesses and investments including Conforama France, Bensons for Beds, Harveys, Relyon, Unitrans, KAP Industrial, PSG Group, Showroomprivé, and associated property assets. Creditors received substantial interests in parts of the remaining portfolio, including Conforama and other retail holdings. In 2022, Steinhoff finalized a compensation framework for retail investors. The company was officially delisted in October 2023, while regulatory and criminal investigations continued.
- 2023
Official delisting
[1]Steinhoff International is officially delisted in October after years of restructuring and litigation.
- 2020
Conforama France is sold
[1]Steinhoff sells its remaining interest in Conforama France to Mobilux.
- 2019
PwC investigation summary is published
[1]Steinhoff releases a summary describing fictitious and irregular transactions that inflated reported profits and assets.
- 2017
Accounting scandal becomes public
[1]Markus Jooste resigns and the company begins an independent forensic investigation after accounting irregularities are disclosed.
- 2016
Expansion into Poundland and Mattress Firm
[1]Steinhoff completes its acquisition of Poundland and announces the purchase of United States mattress retailer Mattress Firm.
- 2015
Pepkor acquisition and Dutch reorganization
[1]Steinhoff acquires Pepkor and establishes a Dutch holding company, moving its primary listing from Johannesburg to Frankfurt.
- 2011
Investment in Conforama
[1]Steinhoff invests approximately $1.2 billion in French furniture retailer Conforama.
- 1998
Headquarters move and Johannesburg listing
[1]The group moves its headquarters to South Africa and lists on the Johannesburg Stock Exchange.
- 1997
Entry into South Africa
[1]Steinhoff acquires 35 percent of South African furniture company Gommagomma.
- 1964
Steinhoff is founded in Germany
[1]Bruno Steinhoff establishes a furniture-trading business in Westerstede, sourcing furniture from Eastern Europe for Western European markets.
Products and positioning
A diversified, acquisition-led retail holding group focused on value-oriented and mass-market consumers, with particular strength in furniture, household goods, discount merchandise, and bedding.
Discount retail
Pep
A South African value-retail chain associated with low-priced clothing, footwear, household goods, and general merchandise. Pep was part of the Pepkor portfolio acquired by Steinhoff in 2015 and represented the group’s emphasis on high-volume, price-sensitive consumers.
Discount retail
Poundland
A United Kingdom discount retailer acquired by Steinhoff in 2016. Its stores primarily offered general merchandise, household products, food, and seasonal goods at low prices and became part of Steinhoff’s European value-retail strategy.
Furniture retail
Conforama
A large European home-furnishings retailer selling furniture, bedding, household products, and related goods. Steinhoff invested in Conforama in 2011 and later sold its remaining French interest in 2020.
Bedding and mattress retail
Mattress Firm
A United States mattress and bedding retailer acquired by Steinhoff in 2016. Mattress Firm later filed for Chapter 11 bankruptcy protection in 2018 and emerged after restructuring. Steinhoff retained a minority interest in the business in the later portfolio.
Discount general merchandise
Pepco
A European discount chain offering clothing, household goods, toys, and general merchandise. Pepco formed part of Steinhoff’s European value-retail interests and was identified as a priority growth platform during the group’s post-scandal restructuring.
Furniture retail
Kika
A home-furnishings retail brand acquired through Steinhoff’s purchase of Kika-Leiner in 2013, with operations in parts of Central and Eastern Europe.
Controversies
2017
Steinhoff accounting scandal
Accounting irregularities disclosed in December 2017 led to the resignation of chief executive Markus Jooste, a collapse in the share price, investigations by authorities in several jurisdictions, creditor actions, and extensive investor litigation. A PwC investigation summary published in 2019 described fictitious or irregular transactions between 2009 and 2017 that inflated group income and asset values by more than €6.5 billion.
2015
German investigation and Poco ownership dispute
German authorities investigated Steinhoff’s accounting and tax disclosures after raids on company offices. Separately, investor Andreas Seifert disputed Steinhoff’s ownership treatment of furniture chain Poco. The parties reached a settlement in 2018 under which Seifert acquired a 50 percent interest based on an agreed equity valuation.
Brand decisions
2022
Finalize investor compensation frameworkOtherBackground
Steinhoff faced numerous civil claims from investors who suffered losses after the 2017 accounting disclosures.
Action taken
The company finalized a compensation arrangement for retail investors, with Deloitte agreeing to contribute to claimant compensation.
Aftermath
The arrangement formed part of the broader resolution of investor litigation and creditor claims.
Combined compensation pool. Approximately R25 billion (2022)
2020
Sell Conforama FranceM&ABackground
Steinhoff was disposing of assets to address debt and simplify its post-scandal structure.
Action taken
The company sold its remaining stake in Conforama France to Mobilux.
Aftermath
Conforama France left the Steinhoff portfolio.
2019
Restructure as a more focused investment holding companyStrategyBackground
Debt, creditor pressure, asset disposals, and litigation made it impractical for Steinhoff to rely on operating growth alone.
Action taken
Management announced plans to sell non-retail assets, reduce costs, dispose of selected investments, and concentrate on core holdings including Pepco, Poundland, and South African retail interests.
Aftermath
The group reduced its portfolio and transferred substantial economic value and ownership rights to creditors during the restructuring.
2016
Acquire PoundlandM&ABackground
Steinhoff pursued European discount retail expansion.
Action taken
Poundland shareholders approved Steinhoff’s takeover offer after the offer was increased.
Aftermath
Poundland became part of Steinhoff’s European value-retail portfolio.
Acquisition offer. £597 million → £610 million (2016)
2016
Acquire Mattress FirmM&ABackground
Steinhoff expanded from European and African retail into the United States bedding market.
Action taken
Steinhoff announced a purchase of Mattress Firm.
Aftermath
Mattress Firm later entered Chapter 11 bankruptcy protection in 2018 and emerged after restructuring.
Announced acquisition value. $3.8 billion (2016)
2015
Acquire PepkorM&ABackground
Steinhoff sought a larger presence in value-oriented retail and a stronger South African and European operating platform.
Action taken
The group completed a cash-and-share acquisition of Pepkor, making Christo Wiese its largest shareholder and chairman.
Aftermath
The transaction substantially expanded Steinhoff’s discount-retail footprint and became central to its later portfolio.
Transaction value. $5.7 billion (2015)
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