HARARE, Jun. 2 (NewsDay Live) — Retail giant Meikles Limited is exploring the sale of its remaining hospitality interests, a move that could complete its exit from the sector as the group intensifies its focus on core operations.
The planned disposal would further streamline the company’s portfolio following years of restructuring, with supermarket operations now accounting for 98% of total revenue in the six months to August 2025.
Meikles began scaling back its hospitality footprint in 2020 when it sold the former Meikles Hotel, now known as Hyatt Regency Harare The Meikles, to ASB Hospitality LLC for US$20 million. ASB Hospitality is a subsidiary of Albwardy Investment.
In a cautionary statement, Meikles said it is engaged in discussions regarding the potential disposal of its remaining hospitality operations.
“The proposed transaction may constitute a Category 1 transaction in terms of Section 253 of Statutory Instrument 134 of 2019. Accordingly, the company will seek shareholders’ approval for the proposed disposal at an Extraordinary General Meeting to be convened in due course,” the company said.
The proposed sale comes as the group grapples with a challenging operating environment.
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For the half-year ended Aug. 31, 2025, Meikles reported an after-tax loss of ZiG165.75 million, widening sharply from a ZiG1.5 million loss recorded in the same period a year earlier. The company attributed the deterioration to exchange-rate losses, weak consumer demand, persistent power outages and rising operating costs.
Analysts say a successful disposal could strengthen the group’s financial position and allow management to concentrate resources on its core retail business.
Despite the losses, Meikles said it remains solvent and has adequate cash resources to meet its obligations over the next 12 months. However, total assets declined to ZiG3.03 billion from ZiG3.33 billion as of February, reflecting lower cash balances, receivables and inventory levels.
“If concluded, the transaction may have a material effect on the value of the company’s shares,” Meikles said.
The company urged shareholders and investors to exercise caution when trading its shares until a full announcement is made.