HARARE — The appointment of Matthew Moxon as Meikles Limited’s new acting CEO has stirred controversy within the company’s leadership. While the move initially appeared to be a continuation of the Moxon family’s legacy at the century-old firm, it has instead exposed a rift, with John Moxon, chairman and largest shareholder of Meikles, publicly opposing his son’s new role.
John Moxon claims that rival board members orchestrated the appointment of Matthew behind his back, warning that this could jeopardize Meikles’ business partnerships, including its crucial alliance with Pick n Pay South Africa, which owns 49% of TM Pick n Pay, Meikles’ retail division. Moxon is now calling for an extraordinary general meeting (EGM) to remove four board members and company secretary Thabani Mpofu, who he alleges acted improperly.
The decision to appoint Matthew Moxon came during a board meeting on October 1, which John Moxon has since described as “highly irregular.” According to his statement, the board dismissed then-CEO Malcolm Mycroft and installed Matthew Moxon as acting CEO without following proper procedures. Mycroft, who previously led TM Pick n Pay, returned to his old role after being removed as CEO.
“At the meeting, the agenda was not followed,” John Moxon said. “Under any other business, the first item for discussion was the dismissal of the group chief executive. There was no agenda item for this matter, and directors were not advised in advance.”
Allegations of Mismanagement and Board Tensions
Reports suggest that Mycroft, prior to his removal, was under scrutiny from some board members and staff for allegedly inflating his earnings, making key decisions without board approval, and reportedly discriminating against lower-level employees. However, John Moxon has dismissed these allegations as “spurious,” adding that the board’s actions during the October meeting have caused “serious reputational and financial liabilities” for the company.
Meikles Limited derives 98% of its revenue from its TM Pick n Pay division, and John Moxon has credited Mycroft for the success of the “flourishing” business. He cautioned that removing Mycroft could have “negative consequences for shareholders” and lead to a poor reception from foreign investors and trade partners, affecting Zimbabwe’s business environment as a whole. Under Mycroft’s leadership, Meikles opened three new retail outlets over the past year.
EGM Call and Stakeholder Reactions
Moxon’s push for an EGM aims to remove four board members he believes acted improperly, as well as the company secretary. Thabani Mpofu, the company secretary, has not commented on the latest developments but previously stated, “We acknowledge the recent speculation and assure our stakeholders that we are committed to making timely and accurate disclosures in accordance with regulatory requirements.”
The shareholder structure of Meikles Limited is another point of contention. John Moxon’s Meikles Consolidated Holdings controls 48% of the company, while Mega Market, owned by prominent ZSE investor Shiraan Ahmed, holds the second-largest stake. Old Mutual is the third-largest shareholder, adding to the array of influential stakeholders with interests in the unfolding dispute.
Meikles’ Strategic Decisions and Legacy
The current dispute marks yet another chapter in Meikles’ long history of significant business decisions. In 2019, Meikles sold its iconic Meikles Hotel to Albwardy, a Dubai-based hotel investment company, for $20 million, redirecting the proceeds into agriculture and retail. In 2022, Meikles spun off its tea and coffee producer, Tanganda, as a separate listing, signalling a strategic shift toward a leaner, retail-focused model.
The Moxon family’s ties to Meikles date back to its founding, with John Moxon being a direct descendant of Thomas Meikle, who established the business. However, this latest boardroom clash highlights the complex dynamics within the company and the competing visions of Meikles’ future, both as a legacy business and as a publicly traded enterprise.
The outcome of Moxon’s call for an EGM could reshape the company’s leadership structure and influence its strategic direction. Meanwhile, stakeholders, including Pick n Pay, Meikles’ shareholders, and potential investors, will be watching closely as the family’s internal strife unfolds.
Source: NewZwire