The scandal-hit retail giant, Steinhoff faces an uncertain future after its former chair, Christo Wiese announced he would sue the company for R59 billion.

Wiese, a billionaire retail tycoon, is seeking to recover investments he made in Steinhoff in 2015 and 2016.

He was the biggest shareholder in the company when an accounting scandal erupted in December.

The company’s stock has since crashed 95 % after it admitted to accounting irregularities.

Chief executive, Markus Jooste, and Wiese both resigned in the wake of the crisis, with the company under investigation in Germany.

Deputy Chairman at Sasfin Securities, David Shapiro says Wiese’s move has dealt a major blow to Steinhoff’s efforts to survive.

“It’s too late for Steinhoff because there is no more value left in it. Steinhoff has a market value at the moment of about 8bn rand which I think each day that passes us there is more and more problems that this company is facing in order to try and create value or retain value. But should this be successful I think we are not only going to lose value in Steinhoff but I think Star or Steinhoff retail could come under severe pressure if there is a chance that he could get his shares back.”

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