OK Zimbabwe Limited has announced the closure of 14 stores and a sweeping 35% cut in operating costs as part of a drastic turnaround plan to address a severe liquidity crisis. The retailer, which faced a US$30.5 million funding shortfall earlier this year, successfully raised US$20 million through a rights issue but remains hampered by delays in realizing US$10.5 million from planned property sales. The setback has left shelves understocked and revenue below break-even levels, despite shareholder support for the recovery strategy.
The restructuring has seen 11 non-viable outlets permanently shut, including three Food Lover’s Market franchises, with three more closures underway. The company will now concentrate on 62 strategically located stores, while relocating its Bon Marche’ Chisipite and OK Makoni branches to new facilities aimed at boosting competitiveness. Head Office staff has also been reduced, with further cuts expected as the company targets an additional 15% cost reduction by December 2025.
Management confirmed that engagements with suppliers have led to partial debt settlements and resumed deliveries, though limited trading terms continue to restrict stock availability. An interim management team is steering operations until a reconstituted board is announced at the upcoming Annual General Meeting. While acknowledging ongoing losses, the company expressed cautious optimism that property sales will soon inject much-needed liquidity, enabling a return to stability and growth.
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