Major investors plan to buy new shares in OK Zimbabwe, CEO Willard Zireva told Reuters on Wednesday. The retail group needs money after announcing a financial rescue plan earlier this month. The company wants to issue new stock, place private shares with investors, and create debt tools to fix its money problems. They brought back Zireva as chief after his retirement seven years ago because he guided the company through the 2008 economic crisis.
Small shops have hurt OK Zimbabwe with growing competition. Many informal stores offer cheaper prices throughout the country, making life hard for established retailers. The company admitted last month it owed suppliers more than $30 million. They shut down five stores this year and struggle to keep products on shelves in others. The biggest company shareholders include Datvest Nominees Foreign, with nearly 20 percent, National Social Security Authority, holding 16 percent, Old Mutual Life, with about 13 percent, and Stanbic Nominees, with almost 13 percent.
Small shops have hurt OK Zimbabwe with growing competition. Many informal stores offer cheaper prices throughout the country, making life hard for established retailers. The company admitted last month it owed suppliers more than $30 million. They shut down five stores this year and struggle to keep products on shelves in others. The biggest company shareholders include Datvest Nominees Foreign, with nearly 20 percent, National Social Security Authority, holding 16 percent, Old Mutual Life, with about 13 percent, and Stanbic Nominees, with almost 13 percent.
