South African retail giant Steinhoff International has started talks with potential lenders for the amount of €200m in a bid to stay afloat.
The company, who acquired Poundland in August 2016 for £610m, has been at the centre of a recent accounts scandal after it was revealed it would have to reissue its financial results as far back as 2002 following signs that “accounting regularities” were deeper than first expected.
Steinhoff has cautioned investors that “there can be no assurance that the company will be able to reach agreement with its finance providers on acceptable terms or at all,” despite South African banks pledging €60m to be paid out imminently.
The company has informed creditors that it expects to be able to meet interest payments on its €10.7bn debt pile, though not at penalty rates.
Shares in the company have fallen over 80%, wiping nearly £9bn of the its value.
The company also owns Harveys and Bensons for Beds in the UK.
A meeting with European lenders to help free up extra cash is scheduled for January 26th.