CAPE TOWN - The South African central bank is investigating whether Steinhoff had breached any exchange control laws or regulations, the regulator said in a statement to a parliamentary committee on Wednesday.

The South African Reserve Bank said it was ready to cooperate with local and international regulators as well as law enforcement authorities investigating Steinhoff. Were Steinhoff to collapse, it would not result in financial instability, the bank added.

In a meeting with its lenders last Friday in London, the retailer committed to giving a quarterly trading update at the end of February.

Steinhoff’s subsidiary Conforama in France said its financing position has been secured and it has a commitment letter signed for an asset-based lending facility of 115million (R1.69billion).

The execution is expected today along with first drawdown. In addition it has sold a non-core asset, a 17percentstake in Showroomprivé to Carrefour, which was announced on January 11 for net proceeds of 79m.


In the UK, Steinhoff has managed to raise £260m (R4.36bn), an increase from the £180m of new funding announced on January 3.

- REUTERS