OK Zimbabwe supermarket chain plans major changes to fix financial problems. Willard Zireva will take over as executive chairman after Herbert Nkala steps down. The company fired several top managers and brought back experienced leaders to help stabilize operations. Board members Rose Mavima, Tawanda Gumbo and Wonder Nyabereka will also leave their positions. Zireva previously ran the company for more than twenty years.
The supermarket needs to raise 30.5 million dollars to pay debts and improve business. Company leaders want 20 million dollars from shareholders through new stock sales. They plan to sell some buildings to raise another 10.5 million dollars. Shareholders must pay about one cent for each new share they buy. The company owes more than 30 million dollars to suppliers and other creditors.
Major shareholders have promised to support the money-raising plan. Three large investors will guarantee 16.54 million dollars if other shareholders refuse to buy new stock. The National Social Security Authority, Datvest Nominees and Old Mutual signed agreements to help fund the effort. Other shareholders controlling 36 percent of the company also committed to participate. The fundraising campaign will start July 21 and end August 4.
OK Zimbabwe faces tough competition from informal retailers who avoid regulations. Higher costs and fewer customers have hurt store profits. Poor management decisions and delayed payments to suppliers created additional problems. The company hopes new leadership and fresh money will help restore customer confidence.
The supermarket needs to raise 30.5 million dollars to pay debts and improve business. Company leaders want 20 million dollars from shareholders through new stock sales. They plan to sell some buildings to raise another 10.5 million dollars. Shareholders must pay about one cent for each new share they buy. The company owes more than 30 million dollars to suppliers and other creditors.
Major shareholders have promised to support the money-raising plan. Three large investors will guarantee 16.54 million dollars if other shareholders refuse to buy new stock. The National Social Security Authority, Datvest Nominees and Old Mutual signed agreements to help fund the effort. Other shareholders controlling 36 percent of the company also committed to participate. The fundraising campaign will start July 21 and end August 4.
OK Zimbabwe faces tough competition from informal retailers who avoid regulations. Higher costs and fewer customers have hurt store profits. Poor management decisions and delayed payments to suppliers created additional problems. The company hopes new leadership and fresh money will help restore customer confidence.
