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Steinhoff International Holdings has agreed to sell its loss-making Kika/Leiner furniture chain, saving 5,000 jobs and improving the prospects for the group's other businesses worldwide.

 

The retail business and its properties are to be bought by SIGNA Holding, a company controlled by René Benko, a wealthy real estate investor well known in Austria, where the Kika/Leiner business is based.


Terms were not immediately disclosed.


Following the disposals, the group and the Kika/Leiner sale assets shall have no claims, receivables or other liabilities to each other, Steinhoff said in a statement.


Any cash demands on the group from the Kika/Leiner sale assets will now cease, it added, which is good news for other Steinhoff entities that may have been asked to prop up the ailing chain.


The Kika/Leiner business is currently loss-making and placed significant cash demands on the wider group, Steinhoff said, while credit insurance cover for its suppliers had been pulled at the beginning of June, hastening the need to find a solution.



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