Struggling retail giant OK Zimbabwe Limited has received $20 million from a capital raise in August, a crucial lifeline as the company battles to manage its crippling debt burden. The retailer is now exploring offers for its supermarket properties to secure an additional $10.5 million through a sale-and-leaseback arrangement, allowing it to continue operations at key locations.
OK Zimbabwe’s debt woes are significant, with $30.34 million in debts accumulated under previous management. Despite the recent funding, the company remains technically insolvent, with current liabilities of $44.22 million dwarfing its current assets of $25.47 million. This leaves only $0.57 in assets for every dollar of short-term debt.
Outgoing chairman Herbert Nkala said the funds will be used to settle part of the company’s debt, unlock supplier credit support for restocking, and support a broader restructuring plan. The plan includes retraining staff, cost optimization, and expanding in-store and online sales strategies. Nkala noted that the recovery has started, but it will take time to return to normal operations.
OK Zimbabwe’s revenue plummeted 53% to $240 million, while losses more than doubled to $29.61 million compared to $11.04 million in 2024. The company attributed the decline to supply chain disruptions, exchange rate instability, liquidity constraints, and pricing distortions from government currency controls.
With the recent injection of funds and ongoing restructuring efforts, OK Zimbabwe is working to stabilize its operations and return to profitability. The company’s ability to navigate Zimbabwe’s challenging economic environment will determine its survival as one of the country’s oldest retail brands .
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