Crisis-hit South African retailer Steinhoff raised 3.66 billion rand (€250 million) from the sale of a 16.7 per cent stake in KAP Industrial, another step in its efforts to shore up its finances and pay down debt.

Steinhoff, which has more than 40 retail brands that include Conforama, Poundland – trading in Ireland as Dealz – and Mattress Firm, faced a fight for survival after admitting "accounting irregularities" in December, wiping about 85 per cent off its market value and throwing it into a liquidity crisis.

The company has said it plans to raise about €2 billion from the sale of non-core assets and the proceeds of debt repayments from its African unit Steinhoff Africa Retail to plug a hole in its balance sheet.

Steinhoff has already raised about €588 million from the sale of stakes in South African investment firm PSG Group, French online retailer Showroomprive.com, as well a property in Austria. – Reuters