HARARE – OK Zimbabwe Limited, a major player in the country’s retail sector and a Zimbabwe Stock Exchange-listed company, has announced plans to dispose of key assets—including four supermarkets—in a bid to raise US$10.5 million and escape mounting financial difficulties.
The move, revealed through a cautionary statement and a circular to shareholders, forms part of a broader turnaround strategy aimed at addressing a deepening liquidity crisis that has left the company struggling to meet its financial obligations.
OK Zimbabwe is currently grappling with “acute financial distress,” marked by inadequate operational cash flows, escalating debts, and an increased risk of legal action from unsettled creditors. The financial strain has also severely undermined the company’s operational capacity.
In response, the board of directors is proposing the disposal of several immovable assets to generate urgent working capital. Properties earmarked for sale include OK Mbuya Nehanda in central Harare, OK Gweru, OK Glen View, and OK Malvern. The company also intends to sell a warehouse and two vacant commercial stands as part of the recovery package.
According to company secretary Margaret Munyuru, the projected US$10.5 million in net proceeds—after transaction costs—will be channelled towards restocking store shelves and settling overdue debts, which had ballooned to US$30 million by 28 February 2025.
“The capital injection is intended to restore inventory levels to normalcy and improve the group’s ability to meet customer demand,” said Munyuru in the circular. “The asset disposal strategy is a critical step in addressing immediate cash flow constraints and repositioning the business for long-term growth.”
The restructuring plan comes at a time when the retail giant, once a household name across Zimbabwe, has been losing ground to more agile competitors amid macroeconomic instability and inflationary pressures. The company hopes that the asset sales will offer a lifeline, helping it avoid further deterioration and possible judicial proceedings.
Shareholders are expected to vote on the proposed disposals in the coming weeks.
