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Steinhoff flags H1 loss on litigation, restructuring-related costs

Troubled retailer Steinhoff International Holdings NV expects to report a post-tax loss for the first half of 2018 due to costs related to restructuring, losses on asset sales, impairments and litigation.

Following a meeting with lenders, the South African retailer said its retail operations revenue is expected to rise 1% year over year to €9.4 billion in the six months ended March 31.

Steinhoff also provided the creditors with a restructuring plan and sought a three-year extension on its outstanding debt, which stands at €9.6 billion.

The South African retailer, which is involved in an accounting scandal, plans to publish unaudited first-half figures June 29.

The share price of the owner of U.S. specialty bedding retailer Mattress Firm plummeted in December 2017 after accounting irregularities came to light. Since then the embattled retailer has found itself embroiled in investigations and lawsuits. Steinhoff hired accounting firm PricewaterhouseCoopers LLC to probe its finances.

Earlier in May, the company said PwC's independent investigation found that the expected overstatement of profits and the accounting treatment of related parties could result in material additional impairments.

In April, former Chairman Christo Wiese sued the company for 59 billion South African rand, seeking to recover investments he made in Steinhoff before its stock price dropped.

As of May 17, US$1 was equivalent to 12.57 South African rand.