Online Reporter
Michael Tome
Business Reporter
OK Zimbabwe is yet to unlock the US$10,5 million from the planned sale of properties to raise the funding required for its multimillion-dollar recapitalisation plan to reboot operations, which have been weighed down by mounting debts and stockouts.
The funds are part of a broader US$30,5 million recapitalisation programme approved by directors and shareholders to address crippling debts and an acute liquidity shortfall.
OK has so far raised US$20 million through a renounceable rights issue approved at an Extraordinary General Meeting on July 17, 2025, while US$10,5 million was expected to be mobilised from the sale of selected freehold properties.
According to OK Zimbabwe, sale and purchase agreements for two of the targeted properties are now nearing finalisation, while offers for three others are still under review.
The retailer said efforts to dispose of additional properties continue, with management confident that some deals will be finalised soon as management pushes to improve liquidity and restore normal product procurement cycles.
Company secretary Mrs Margaret Munyuru said the delays had materially affected day-to-day trading.
“The property sales have taken longer than expected to materialise, and as a result, the US$10,5 million funding has not yet been realised. Sale and purchase agreements on two of the properties are about to be signed, while offers on the other three are being reviewed. Efforts to dispose of the other properties and improve liquidity continue.
“The delay in the disposal of property assets has hampered liquidity generation that would allow the Group to procure more products to support the required level of sales. Management is confident that some of the properties will be sold and the proceeds paid into the business soon,” said OK Zimbabwe company secretary Mrs Margaret Munyuru in the group’s market update issued yesterday.
These developments come as the group has closed eleven stores which were no longer viable, including three Food Lover’s Market outlets, which have been wound down, and the franchise was not renewed.
The group also closed the loss-making pharmacy business
Despite the closures, OK Zimbabwe indicated that it will continue to operate 62 strategically located stores across the country, which are now receiving priority in product allocation to maximise stock turn and generate cash flow.
The company warned that any store failing to perform at sustainable levels may also be closed.
According to OK, the Chisipite Shopping Centre is being redeveloped into a bigger mall, while the Bon Marche supermarket will be relocated to a newly constructed facility at the redeveloped centre.
OK Makoni will be moved from its current small outlet to a more spacious store newly constructed at the Makoni Shopping Centre, allowing it to carry a broader product range and compete more effectively in the high-traffic area.
OK Zimbabwe acknowledged that despite aggressive cost-cutting and restructuring, revenue remains below break-even levels.
The company continues to face tight trading terms and constrained product supply, both tied to the unresolved liquidity deficit.
Staff development programmes are being intensified, with customer service training prioritised as the Group seeks to strengthen competitiveness in a crowded retail market.
Going forward, the group expressed confidence that ongoing restructuring, successful capital raising, and eventual realisation of property sale proceeds will stabilise the business.
“The group remains positive about the future and is fully supported by the shareholders, with the Board of Directors and management working in concert for the recovery of the business.”
