Retail chain OK Zimbabwe has been placed under corporate rescue with effect from 24 February 2026 after suppliers stopped extending credit pushing the company into financial distress.
The company’s board of directors passed a resolution on 23 February to voluntarily commence corporate rescue proceedings under Section 122 of the Insolvency Act [Chapter 6:07].
Bulisa Phillimon Mbano of Grant Thornton Chartered Accountants (Zimbabwe) has been appointed as the corporate rescue practitioner.
In a sworn affidavit, board chairperson Charles Msipa said that despite raising US$20 million through a rights offer approved by shareholders in July 2025, the company’s financial troubles deepened as suppliers drastically reduced credit.
“Suppliers have reduced credit extension and payment terms have been shortened to one week or a maximum of two weeks. Suppliers have stopped conducting business with the company as they do not want to increase their exposure,” Msipa said.
The board noted that the shortage of stock in stores had triggered a significant decline in revenue and cash flow.
“As a result of not having the products in the stores, the company has experienced a significant decline in revenue and cash flows and its operations have virtually ground to a halt,” the resolution stated.
Although part of the rights offer proceeds was used to pay down creditor debt, fund working capital, cover capital expenditure and transaction costs, these measures were insufficient to restore supplier confidence.
The board remains optimistic about the company’s prospects citing valuable assets including property, equipment, skilled staff, customer loyalty and industry expertise that could underpin a successful turnaround.
The corporate rescue notice was filed with both the Master of the High Court and the Registrar of Companies on 24 February 2026 and all affected parties including creditors, employees, trade unions and shareholders have been formally notified.
The appointed practitioner will now investigate the company’s affairs, consult stakeholders and prepare a restructuring plan aimed at restoring solvency or maximising returns for creditors.
Founded in 1953, OK Zimbabwe has been a longstanding player in the country’s retail sector, operating for more than seven decades under registration number 118/1953.
