When Meikles recently announced the appointment of Matthew Moxon as the new CEO, it looked on the surface like a case of a family continuing its century-old dynasty. But, it turns out John Moxon, Meikles chairman and the largest shareholder, is against his son’s appointment.
He accuses rival board members of doing it behind his back, and warns this may damage the company and its lucrative partnership with Pick n Pay South Africa, which owns 49% of the retail business. He is now plotting to push out the board members out of the business.
On October 1, the Meikles board met and sacked Malcolm Mycroft as CEO, appointing Matthew Moxon as acting CEO. Mycroft reverted to his old position as head of TM Pick n Pay. This meeting was “highly irregular”, Moxon now says.
“At the meeting, the agenda was not followed. Under any other business, the first item for discussion was the dismissal of the group chief executive. There was no agenda item for this matter and directors were not advised in advance of the meeting of the matter being discussed,” John Moxon says in a statement.
Before the changes, press reports had suggested that Mycroft was under attack from staff and some in the board for inflating his earnings, signing “a critical agreement without the board’s knowledge or approval”, and discrimination against lower-level workers.
John Moxon denies allegations: “The allegations levelled against the Group CEO (Mycroft) are spurious and the actions taken by the board at this meeting have resulted in serious reputational and financial liabilities for Meikles Limited, and consequently its shareholders.”
Meikles gets 98% of its revenue from TM Pick n Pay, and Moxon credits Mycroft for what he calls a “flourishing” business. He warns that sacking Mycroft will have “negative consequences for shareholders and negative reactions by foreign partners, potential investors and trade partners. This is bad for Zimbabwean business”. Over the past year, Meikles has opened three new retail outlets.
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In 2019, Meikles sold Meikles Hotel for US$20 million to Dubai hotel investor Albwardy, investing the earnings into its agriculture business and retail. Meikles and Albwardy are said to be in talks for 50% of Victoria Falls Hotel, which Meikles co-runs the hotel with African Sun. Other board members are reportedly opposed to the planned transaction. In 2022, Meikles also spun off Tanganda and listed it separately.
Moxon wants an EGM to remove the four board members, plus company secretary Thabani Mpofu.
Mpofu has not commented on the latest developments. However, previously, he said of the allegations against Mycroft: “We acknowledge the recent speculation and assure our stakeholders that we are committed to making timely and accurate disclosures in accordance with regulatory requirements.”
Moxon’s company, Meikles Consolidated Holdings, owns 48% of Meikles Limited. The second largest shareholder is Mega Market, a significant ZSE investor by entrepreneur Shiraan Ahmed. Old Mutual is the third largest shareholder.
John Moxon is the son of Marjorie Meikle, the eldest daughter of Thomas Meikle, the founder of the business.
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