Shares in Steinhoff International, the South African-based owner of Poundland, plummeted by nearly 63% and the organisation is probing “accounting irregularities”.
This has led to the resignation of chief executive Markus Jooste as Steinhoff postponed its total year results. Mr Jooste had been with the company for nearly two decades, overseeing Steinhoff becoming of the biggest household goods retailers in the world.
PwC, an accountancy solutions firm, will launch an investigation to determine what exactly has happened with Steinhoff, where shares ended the day nearly two-thirds lower.
Steinhoff deals with all kinds of retailers and businesses, ranging from furniture and homeware to clothing, footwear and consumer goods, owning 40 brands in over 30 countries.
"The supervisory board of Steinhoff wishes to advise shareholders that new information has come to light today which relates to accounting irregularities requiring further investigation," said Steinoff in a statement.
Elswhere recently, a wholesale arrangement was reached between the Co-op and Costcutter after Palmer & Harvey Wholesalers went into administration.