Kirkland & Ellis and Linklaters are advising on the restructuring of South African conglomerate Steinhoff International, which plunged into crisis last month after admitting to accounting irregularities.

In December, Steinhoff, which owns budget UK retailer Poundland, revealed financial irregularities, causing its share price to tank and lenders to restrict access to credit lines.

The company reportedly has €2.7bn (£2.4bn) in convertible bonds, in addition to €10.7bn (£9.5bn) in debt.

The bondholders have hired Kirkland to advise on the restructuring, with the US firm fielding a team led by London restructuring partners Sean Lacey and Kon Asimacopoulos, with support from Munich partner Sacha Luerken. Lacey joined the firm from Freshfields Bruckhaus Deringer in May last year.

Linklaters is acting for longstanding client Steinhoff, with restructuring co-head Richard Bussell leading the firm's team.

The magic circle firm has a close relationship with Steinhoff, with South African-born senior partner Charlie Jacobs a key adviser to the company. It acted for the retailer on its acquisitions of Poundland and Mattress Firm Holding and also advised on its 2015 listing on the Frankfurt stock exchange.

Last week, Legal Week reported Linklaters was acting for Steinhoff on a £180m refinancing deal for Poundland, in a move aimed at reducing the budget retailer's reliance on its parent company.

Other restructuring mandates for Kirkland include advising Toys R Us on a pre-Christmas company voluntary agreement which saved the toy retailer from administration.

Since news of the Steinhoff scandal broke last month, three top executives have resigned. Chief executive Markus Jooste and chairman Christo Wiese stood down in December, as accountant PwC launched an investigation into its accounts.

Last week, finance chief Ben la Grange, whom PwC has cleared of any wrongdoing, also left his role.