OK Zimbabwe’s turnaround plan is facing some challenges. The company aimed to raise US$30.5 million to restock and clear debts, but selling properties to raise US$10.5 million has taken longer than expected. Shareholders have put up US$20 million, and two assets are close to being sold, with offers on three more on the table.
The company is still negotiating with suppliers, who are owed US$24 million. OK has agreed to a partial settlement, but trading terms are tight, making it hard to build up stock. The company is appealing to suppliers to work with them, emphasizing that their success is tied to OK’s success.
In terms of restructuring, OK has shut 11 stores, with three more to be closed, leaving 62 stores operational. The company is also trimming head office jobs and has reduced operating costs by 35%, with another 15% drop expected by December. Bon Marché Chisipite will move to a bigger space as the shopping complex expands .
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