Mayfair Holdings in battle with minority shareholders from Lodestone

Mayfair Holdings, the private investment company of former Steinhoff International chief executive Markus Jooste, is under fire as the company tries to sell Lodestone Brands to “repay defaulted debt”.

According to Bloomberg, minority shareholders from Lodestone – a company that sells beverage, confectionery and baby care products – are trying to prevent Mayfair Holdings from auctioning off the company. Lodestone is well-known for their brands including Rascals, Fusion and Cuddlers.

READ MORE: Steinhoff’s ex-CEO could make a tidy penny after deal with banks

The co-founders of Lodestone believe that Mayfair’s decision to auction off the company would “jeopardise” its future, Bloomberg reported. They have offered to buy out Mayfair, and Standard Bank has even designated in an affidavit that there are “24 potential buyers and investors” for Lodestone.

Contrarily, Jooste’s son-in-law Stefan Potgieter has said that Mayfair’s stake in Lodestone would be lower if it was sold rather than auctioned. According to Bloomberg, Potgieter said, “A competitive process would result in the highest possible sale price for all investors, regardless of who is successful.”

Mayfair Holdings decision comes as the company is challenged to “dispose of assets” in order to repay debt amounting R959-million to banks by the end of the year, according to Bloomberg. Overall, the company has R1.4-billion that they are able to dispose of.

Jooste stepped down amid an investigation into accounting fraud which saw the share price in Steinhoff dropped dramatically.

After departing from Steinhoff in December, Jooste soon left his position at Mayfair, leaving Potgieter on the board. Potgieter is leading the break-up of the company, according to Bloomberg.

READ MORE: Steinhoff dances to zombie drums

As Steinhoff struggles to make-up the €10.4-billion and Mayfair approaches its payback deadline, Jooste has “been referred to a South African anti-corruption police unit”.

Subscribe to the M&G

These are unprecedented times, and the role of media to tell and record the story of South Africa as it develops is more important than ever.

The Mail & Guardian is a proud news publisher with roots stretching back 35 years, and we’ve survived right from day one thanks to the support of readers who value fiercely independent journalism that is beholden to no-one. To help us continue for another 35 future years with the same proud values, please consider taking out a subscription.

Related stories

Khaya Sithole: Steinhoff – a gang of desperate adventurers?

As long as the only legitimate litigant is Steinhoff itself, the company’s directors will remain at large

Steinhoff relies on legal ‘fig leaf’

Journalists’ court case challenges corporates that hide behind legal ‘professional’ privilege’

EDITORIAL: Writing was on the board for DA

It ought not to have made any sense. And yet, it somehow did. The DA had spent much of the year before at war with itself

Pay back the money: Markus Jooste, Steinhoff edition

The former Steinhoff chief executive could be ordered to pay back R870-million to the global general household retailer

Steinhoff results raise more doubt

Revised financial statements reveal just how deeply compromised the ‘zombie company’  is

Fictitious and irregular deals key to Steinhoff heist

The summary of a PwC report sketches an outline of the conspiracy at the heart of efforts to inflate the retail group’s profits and assets

Subscribers only

SAA bailout raises more questions

As the government continues to grapple with the troubles facing the airline, it would do well to keep on eye on the impending Denel implosion

ANC’s rogue deployees revealed

Despite 6 300 ANC cadres working in government, the party’s integrity committee has done little to deal with its accused members

More top stories

Eastern Cape universities concerned by rising Covid cases

Fort Hare says 26 more students have tested positive while Walter Sisulu University says some of its students have been admitted to hospital.

SAA in talks to recoup R350-million in blocked funds...

The cash-strapped national carrier is in the process of recouping its blocked funds from Zimbabwe, which could go towards financing the airline’s business rescue plan

NSFAS’s woes do not help its mandate

Nehawu wants the scheme’s administrator, Randall Carolissen, to be removed

Unions cry foul over SABC dismissal costs and retrenchments

Broadcaster bodies say claims that a recent skills audit is unrelated to retrenchments are ‘irrational’

press releases

Loading latest Press Releases…

The best local and international journalism

handpicked and in your inbox every weekday