JOHANNESBURG, March 18 South African furniture
group Steinhoff offered to increase its holding of
debt-laden subsidiary JD Group to 98 percent to rescue
the household retailer from "challenges" in the consumer market
and credit market.
Steinhoff, which currently owns 56.8 percent of the ailing
JD Group, said it would provide quick and much-needed financial
support to the company, which is saddled with bad debt because
of cash-strapped consumers failing to make payments.
"JD Group is facing many challenges in the furniture retail
and consumer finance business segments. These challenges will
take some time and additional capital to overcome," said
In February, JD Group reported heavy losses and nearly
doubled the money set aside to cover customers' unpaid
Shares of JD Group surged 28.4 percent to 28.21 rand, while
Steinhoff rose 1 percent to 53.45 rand.
(Reporting by Zandi Shabalala; Editing by Ed Cropley)