Steinhoff International Holdings NV is mulling an IPO of its London-based apparel unit Pepkor Europe Ltd. to raise funds for its debt restructuring plan, Bloomberg News reported Aug. 6, citing people with knowledge of the matter.

The South African retailer is reportedly discussing a listing of its European unit with potential advisers. The business, which operates discount chain Poundland Group Ltd. as well as Dealz and Pepco store chains, could sell shares as early as next year, the sources said.

Steinhoff is selling Pepkor shares in London, and a Warsaw listing is also a possibility for the unit, the report added.

Steinhoff did not immediately respond to S&P Global Market Intelligence's request for comment.

In July, the retailer reported a €356 million loss from continuing operations for the six months ending March 31. Steinhoff said at the time that it aims to cut debt and improve its operations in the second half of the year.

The company, engulfed in an accounting scandal, has so far in 2019 raised 4.8 billion South African rand from the sale of its 25.67% stake in its unit KAP Industrial Holdings Ltd. and about €316 million in new financing from the financial restructuring of its Conforama Holding SA home furnishing unit.

As of Aug. 6, US$1 was equivalent to 14.97 South African rand.