By Business Reporter-OK Zimbabwe is struggling to recapitalise and reopen several stores it was forced to close across the country, as the company battles the ripple effects of the failing ZiG currency, which has severely hampered its ability to restock.
The retail giant recently revealed that efforts to raise US$30 million in fresh capital are at an advanced stage. The planned recapitalisation aims to breathe new life into the business, which has faced mounting challenges, including supplier resistance, stock shortages, and a ballooning debt burden.
OK Zimbabwe is targeting to complete the fundraising by June 2025.
Last month, the board approved a recapitalisation plan to bridge a critical funding gap, settle outstanding debts, pay creditors, and stabilise operations. Chief Executive Officer Mr Willard Zireva, who recently returned to lead the turnaround, confirmed that discussions with key stakeholders were progressing well.
“Currently, we are finalising talks with potential underwriters, and we are targeting to have the entire process completed and funds received before the end of June 2025,” he said in an interview.
Due to ongoing supply chain challenges—exacerbated by the weakening ZiG, which suppliers increasingly reject—OK Zimbabwe closed six branches by March 31, 2025, and laid off affected staff. However, the company has since reversed the closure of its Mbare and Entumbane branches as part of a broader operational reset under Zireva’s leadership.
The capital raise will involve a combination of a rights issue, private placement, and debt instruments. The main goal is to strengthen the company’s balance sheet and improve liquidity, thereby boosting working capital and ensuring smoother operations going forward.
OK Zimbabwe’s financial woes include a staggering US$17 million and ZiG537 million in outstanding payments to suppliers. Some suppliers, frustrated by partial payments, have refused to release new stock—deepening the retailer’s crisis.
Zireva’s return, eight years after stepping down, signals a strategic shift aimed at reviving the brand. Already, there is a rethink of several decisions made under the previous management, including store closures and supply chain management.
The company says the capital injection is crucial for its turnaround strategy and long-term survival.
In a recent cautionary statement, OK Zimbabwe said a shareholder circular will be published soon, along with a notice of an Extraordinary General Meeting to finalise the recapitalisation process.
“Accordingly, shareholders and the investing public are advised to continue exercising caution when dealing in the company’s shares. Further announcements will be made under regulatory requirements as and when there are material developments,” the company said.