OK Zimbabwe Ltd has launched a major restocking programme after obtaining financial guarantees from two leading local banks, a development expected to help the retailer rebuild its operations.
The guarantees have enabled the company to access credit facilities, while also improving confidence among suppliers. Major manufacturers, including Dairibord, ZimGold, Olivine, National Foods and Nestlé, have reportedly resumed deliveries to the retailer.
As stocks return to its stores, OK Zimbabwe has also started reopening some of the branches that were shut down during the company’s cash-flow difficulties.
The reopening programme is part of efforts to attract customers back to the stores and restore the retailer’s presence in the market.
The latest developments follow an agreement between OK Zimbabwe and its major trade creditors to postpone payments on some of its outstanding legacy debts.
The arrangement has provided the company with additional liquidity and financial space to restart normal trading operations.
Corporate Rescue Practitioner Bulisa Mbano confirmed that the agreements with creditors had given the business much-needed breathing room to revive store operations.
Mbano, however, acknowledged that the recovery process remains at an early stage, with the company still working towards achieving operational stability.
Management remains optimistic that the restocking exercise, reopening of stores and improved supplier relationships will help put the retailer on a more stable footing.
