OK Zimbabwe closes 11 stores to ease debt, curb losses
Zimbabwean retail chain OK Zimbabwe has shuttered 11 locations and discontinued its pharmacy operations as part of an extensive restructuring effort to address liquidity constraints and reduce its store network to 62 outlets. The company reported a $25.03 million loss for its most recent financial year while managing debt exceeding $30 million through a $20 million capital raise and planned property sales targeting $10.5 million.
Management reduced operating expenses by 35 percent and plans additional cuts while consolidating product distribution to profitable locations with stronger inventory turnover. The retailer closed three Food Lover’s Market franchise outlets and decreased administrative staffing following the store reductions.
Property transactions have progressed more gradually than anticipated, with agreements pending on multiple facilities. OK, Zimbabwe continues negotiations with suppliers to extend payment terms and restore adequate inventory levels after implementing partial debt settlements earlier this year.
