OK Zimbabwe Placed Under Corporate Rescue

OK Zimbabwe has been placed under corporate rescue from 24 February after suppliers stopped extending credit and trading with the company.

The board passed a resolution on 23 February 2026 to voluntarily begin corporate rescue proceedings in terms of 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 to steer the process.

In an affidavit, board chair Charles Msipa said that despite raising US$20 million through a rights offer approved by shareholders in July 2025, the retail giant’s financial position has continued to deteriorate, with suppliers drastically cutting back on credit. Msipa said:

“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.”

In the board resolution dated 23 February and signed by all directors, it was noted that operations had virtually ground to a halt due to empty shelves across many stores.

The shortage of stock triggered a sharp drop in revenue and cash flow, piling further pressure on the business.

Part of the US$20 million raised through last year’s rights offer was used to settle creditor debts, support working capital, cover capital expenditure and pay transaction costs. However, that was not enough to restore supplier confidence.

Despite the turmoil, the board insists the company is still viable. It pointed to valuable assets such as its property portfolio, equipment, experienced workforce, loyal customer base and industry know-how as key strengths that could underpin a turnaround.

The notice to begin corporate rescue proceedings was filed with the Master of the High Court and the Registrar of Companies on 24 February 2026.

All affected parties, including creditors, employees, trade unions and shareholders, have been formally notified in line with statutory requirements.

The appointed corporate rescue practitioner will now assess the company’s affairs, engage stakeholders and draw up a restructuring plan aimed either at returning the retailer to solvency or securing a better return for creditors.