Steinhoff is to sell the properties of its European subsidiary Conforama Iberia and lease them back, the South African retail group said on Friday, as part of efforts to cut debt and pay back creditors.
Conforama Iberia, a furniture and homeware retailer with operations in Spain and Portugal, has entered into a binding offer of 107 million euros ($129.54 million), the company said, without naming the buyer.
Conforama also operated in France and Switzerland, before these businesses were sold off in 2020. The retailer had also decided to sell its remaining investments in the Conforama businesses but the sale of the Iberia division was disrupted by the Covid-19 pandemic.
Steinhoff, which is battling the fallout from an accounting fraud in 2017, has been selling off assets as part of plans to deleverage its balance sheet and simplify its portfolio.
The company has not said how long it will continue with asset sales from its retail empire, which sells everything from clothes to electronics and furniture across four continents.
South Africa-headquartered, Dutch-registered Steinhoff said its EBITDA (earnings before interest, taxes, depreciation, and amortisation), a measure of operational profit, fell by 21% to 578 million euros in the year ending September 30, from 733 million euros in 2019.
Annual EBITDA, which is from continuing operations, excluded certain accounting adjustments, the company said.
Revenue was down marginally by 2% to 7.9 billion euros in the period after store closures related to Covid-19.