The owner of brands including Fantastic Furniture has hired financial advisers specialising in helping distressed companies, but says it remains profitable despite problems at its parent company.
Steinhoff Asia Pacific, which also owns Freedom Furniture and Best & Less, says it is financially strong but that it has appointed Minter Ellison and Ferrier Hodgson to provide legal, financial and corporate advice.
The company on Thursday said the appointment was supported by its local lenders, and was a prudent step while parent company Steinhoff International Holdings works through ‘significant uncertainty’.
‘Steinhoff Asia Pacific and its business are not in distress and are trading normally,’ the company said in a statement.
Chief executive Michael Ford said the company, which also owns Snooze and Harris Scarfe, is delivering positive cash flows and is not party to any of the banking facilities of its parent company.
He said the company was in its peak trading period and had had some ‘exceptionally strong’ trading across its retail brands.
Total system sales across Australia and New Zealand are up 3.1 per cent for the 12 months to November 30, compared to the same time a year ago.
In the month of December so far, sales are up 12.4 per cent compared to the same period last year, Mr Ford said.
‘These are healthy sales figures for a business group that is clearly performing well,’ he added.
‘For all our brands in the Steinhoff Asia Pacific group, and our 10,000 employees, it is business as usual.’