Africa Bitcoin Corporation restructures Bambanani amid rising losses

Africa Bitcoin Corporation Limited has initiated a restructuring of its 31% stake in Bambanani Family Group, co-owned by Caryn Cohen and Tomer Cohen, as financial losses deepen and operational pressures mount across the hospitality venture in South Africa.

The group reported an expected net loss of approximately R6.07 million ($371,231) for the financial year ended February 28, 2026, widening from R4.82 million ($294,787) a year earlier. Bambanani operates through Bambanani Bedfordview Proprietary Limited and Bambanani Melville Proprietary Limited, both facing cost pressures and expansion delays.

Financial pressure drives restructuring

The company attributed the downturn to capital shortages, site limitations, and regulatory delays affecting planned expansion, including a children’s theatre and broader entertainment ecosystem.

Africa Bitcoin Corporation said the restructuring aims to preserve value and stabilize operations amid sustained losses.

Melville closure confirmed

As part of the restructuring plan, Bambanani Melville will close on April 30, 2026, with discussions underway for potential asset disposal. Bambanani Bedfordview will continue operations under a reduced cost structure, including workforce adjustments.

Shift to digital revenue model

From May 1, 2026, Bamba’s Kitchen will be relocated to the Melville site to reduce occupancy costs.

The group is also launching “Bambanani at Home,” a subscription-based e-commerce platform targeting its existing base of about 7,000 families, offering meal plans, school lunches, breakfast products, and pet food under a recurring revenue model.

Long-term value preservation strategy

Africa Bitcoin Corporation said the restructuring is focused on reducing losses, optimizing costs, and building a scalable digital revenue stream.

The company acknowledged execution delays but reaffirmed its commitment to supporting the turnaround strategy in a disciplined manner.