OK Zimbabwe placed under corporate rescue as suppliers withdraw credit

OK Zimbabwe placed under corporate rescue as suppliers withdraw credit
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OK Zimbabwe has been placed under corporate rescue with effect from 24 February 2026 after suppliers stopped extending credit to the retailer, a move the company says left shelves under-stocked and revenue sharply reduced.

The decision follows a board resolution passed 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.

In a sworn affidavit, board chairperson Charles Msipa said the company’s position worsened despite raising US$20 million through a rights offer that was approved by shareholders in July 2025. He stated that suppliers had tightened terms and, in some cases, stopped trading with the business altogether.

“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 in the affidavit.

The board resolution, dated 23 February and signed by all directors, recorded that the reduced flow of stock into stores had contributed to a steep drop in revenue and cash flows.

“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.

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The company said part of the proceeds from the July 2025 rights offer was used to pay down creditor balances, support working capital, fund capital expenditure and cover transaction costs, but these steps did not restore supplier confidence.

However, the board maintained that OK Zimbabwe remains viable, pointing to its asset base and experience as factors that could support a turnaround. The company cited assets including buildings, equipment, human capital, an established customer following and industry knowledge.

According to the filing, the notice to commence corporate rescue was submitted to the Master of the High Court and the Registrar of Companies on 24 February 2026. The company also notified affected persons, including creditors, employees, trade unions and shareholders, in line with statutory requirements.

The corporate rescue practitioner is expected to investigate OK Zimbabwe’s affairs, engage with stakeholders and prepare a restructuring plan aimed at either returning the company to solvency or securing a better return for creditors than would be achieved through liquidation.

OK Zimbabwe was registered in 1953 under registration number 118/1953.

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