Tafadzwa Nyikadzino

Struggling retail giants, OK Zimbabwe have announced plans to raise US$30 million to re-stock supermarkets and pay suppliers. The company revealed that the money will enable it to return to full operation.

A statement by OK’s group secretary, Mrs Margaret Munyuru, which was gleaned by this publication, reveals that the company expects to record significant losses in its financial year ending March 31 2025.

She said the company’s operations were affected by exchange rate disparities and inflationary pressures. This affected its viability and ability to maintain stock.

“The company has been unable to maintain adequate stock levels as many suppliers can no longer continue providing goods and services due to outstanding unpaid balances.

“This has directly impacted product availability across the company’s stores, affecting revenue generation and overall business performance, particularly in the last six months where trading levels were inadequate to cover costs.

“In light of the foregoing, the board of directors has resolved to undertake a capital raise in the sum of up to US$30 million to bridge the funding gap and stabilise the company’s financial position.

The capital raise will be a combination of a rights issue, private placement and debt instruments,” she said.

OK Zimbabwe currently has 61 retail outlets in Zimbabwe. However, the past few months have seen some outlets closing down due to shortages of stock.