OK Zimbabwe sacks senior managers in bid to revive struggling retail large

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HARARE – OK Zimbabwe Limited has overhauled its govt management as a part of what it says is an pressing restructuring effort to stabilise the enterprise amid mounting operational challenges.

The firm has parted methods with Chief Executive Officer Maxen Phillip Karombo, Chief Financial Officer Phillimon Mushosho, and Supply Chain Director Knox Mupaya via voluntary separation agreements.

Willard Zireva, who retired as CEO in 2017, returns to the helm of the corporate alongside Alex Siyavora, who assumes the position of chief monetary officer. Siyavora succeeded Zireva as CEO and led OK Zimbabwe till 2021. Muzvidzwa Richard Chingaira is the brand new provide chain director.

The trio has been tasked with steering the retailer’s turnaround over the following six months because the board searches for everlasting replacements.

The board acknowledged the contributions of the outgoing executives and expressed confidence that the brand new management crew would steer the retailer towards restoration.

The restructuring train comes as OK Zimbabwe, in a latest buying and selling replace, stated it’s working to revive regular stocking ranges earlier than the tip of the monetary yr via new procurement fashions and help from provider companions and monetary establishments.

The firm has beforehand stated the fortunes of Zimbabwe’s formal retail sector are tied to change fee stability. In that mild, OK Zimbabwe welcomed the lately introduced financial coverage measures, which eliminated some limitations and launched higher flexibility within the international change market however referred to as for absolute readability on the roadmap in the direction of a full market-determined change fee system.

OK Zimbabwe reported a 36 percenr decline in income for the third quarter ended December 31, 2024, attributing the drop to subdued client spending, forex devaluation, and provide chain disruptions.

The firm confronted acute native forex liquidity shortages, which restricted entry to funding for working capital cycles. A pointy devaluation of the Zimbabwean greenback (ZWG) in September 2024 almost doubled the group’s US dollar-denominated obligations in loans and creditor balances.

Stock availability dropped to round 50 % of regular ranges attributable to restricted provides from producers and distributors. The firm reported that low US greenback gross sales collections, at instances as little as 20 % of gross sales income, exacerbated provide challenges. Suppliers continued to insist on shorter buying and selling phrases and, in some circumstances, prepayments for provides invoiced in native forex, the retail large stated in a latest buying and selling replace.

This strained the group’s working capital and elevated reliance on short-term funding. Power outages additional disrupted operations and elevated prices. In response, OK Zimbabwe closed 4 branches in Harare—Glen Norah, Kuwadzana 5, Chitungwiza Town Centre, and Robson Manyika Street.

Despite the quarterly decline, the group recorded a ten % year-to-date quantity development in comparison with the earlier yr. The firm stays in session with fiscal and financial authorities and continues to interact provider companions and monetary establishments to stabilise operations.