OK Zimbabwe Limited has closed 11 branches and reduced its workforce as part of efforts to restore profitability and address liquidity challenges. The company, led by former senior executives including ex-CEO Willard Zireva, aims to revive its fortunes after facing financial constraints that threatened its viability.
The retailer, which once operated 76 stores nationwide, plans to close three more branches amid efforts to stay afloat. Head office staff have also been reduced, cutting overheads by 35%, with a further 15% reduction targeted by December.
The company has discontinued its loss-making pharmacy business and will relocate the Chisipite and Makoni shops to larger spaces to improve customer experience.
To address a $30.5 million funding gap, OK Zimbabwe raised $20 million through a rights offer and plans to sell properties for the remaining $10.5 million. Two properties have been sold, with offers for three others under review. The company is engaging creditors, and some suppliers have agreed to resume supplies with partial debt payments, helping restock shelves.
OK Zimbabwe’s strategic focus is returning to its core retail business and divesting non-core operations.
