How South Africa’s Steinhoff, owner of Freedom Furniture, cratered in two days
It looked like Steinhoff International Holdings had reached escape velocity from South Africa’s deepening economic gloom: A furniture retailer emulating Ikea’s model and global ambitions, built by men with their own compelling rags-to-riches stories.
Then the debt-fuelled rocket stalled and came crashing down.
From her office overlooking Cape Town’s waterfront, Sygnia Investment Management chief executive Magda Wierzycka watched on her computer screen on December 6 as Steinhoff’s shares began a two-day plunge that cut the price by 80 per cent and lopped some €10 billion ($15.3 billion) from its market value.
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