As Steinhoff’s shares continue to endure several knocks, staff are still fearing that they may soon lose their jobs.
And the Western Cape High Court jurisdiction ruling which stated that it has the power to oversee the company’s liquidation is another blow.
The company has faced several setbacks, key of which is a corruption scandal involving its former head, Markus Jooste.
The founder of Tekkie Town, Braam van Huyssteen and the other previous owners, headed to the Western Cape High Court saying that they had been duped to accept restricted Steinhoff shares in exchange for a controlling interest in Tekkie Town.
The Court’s recent ruling revealed that it has jurisdiction to hear a liquidation bid against the retailer.
This despite Steinhoff’s argument that it cannot face this hearing in a South African court as its parent company is based in the Netherlands.
The company’s shares dropped by nearly 40 percent after the Western Cape High Court’s jurisdiction ruling.
[Header image: DIGI]