By Staff Reporter

Struggling retail giant OK Zimbabwe which employed hundreds of works at its peak is now under corporate rescue with effect from 24 February after suppliers stopped extending credit lines and trading with the company.

The board of directors passed a resolution on 23 February 2026 to voluntarily go under corporate rescue proceedings in terms of Section 122 of the Insolvency Act [Chapter 6:07]. The notice was filed with both the Master of the High Court and the Registrar of Companies on 24 February 2026.

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 despite raising US$20 million through a rights offer approved by shareholders in July 2025, the company’s financial challenges persisted as suppliers significantly reduced credit extension.

“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, highlighted that the lack of stock in stores had triggered a significant decline 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.

The company used part of the rights offer proceeds to pay down creditor debt, fund working capital, capital expenditure and transaction costs but the measures proved insufficient to restore supplier confidence.

The board expressed confidence that the company remains viable, citing valuable assets including buildings, equipment, human capital, customer following and industry knowledge that could be leveraged to achieve a turnaround.

Affected persons including creditors, employees, trade unions and shareholders have all been formally notified in accordance with statutory requirements.

The corporate rescue practitioner will now investigate the company’s affairs, consult with stakeholders and prepare a restructuring plan aimed at either returning the company to solvency or securing a better return for creditors.Struggling OK Zimbabwe now under corporate rescue after suppliers halt credit

By Staff Reporter

Struggling retail giant OK Zimbabwe which employed hundreds of works at its peak is now under corporate rescue with effect from 24 February after suppliers stopped extending credit lines and trading with the company.

The board of directors passed a resolution on 23 February 2026 to voluntarily go under corporate rescue proceedings in terms of Section 122 of the Insolvency Act [Chapter 6:07]. The notice was filed with both the Master of the High Court and the Registrar of Companies on 24 February 2026.

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 despite raising US$20 million through a rights offer approved by shareholders in July 2025, the company’s financial challenges persisted as suppliers significantly reduced credit extension.

“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, highlighted that the lack of stock in stores had triggered a significant decline 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.

The company used part of the rights offer proceeds to pay down creditor debt, fund working capital, capital expenditure and transaction costs but the measures proved insufficient to restore supplier confidence.

The board expressed confidence that the company remains viable, citing valuable assets including buildings, equipment, human capital, customer following and industry knowledge that could be leveraged to achieve a turnaround.

Affected persons including creditors, employees, trade unions and shareholders have all been formally notified in accordance with statutory requirements.

The corporate rescue practitioner will now investigate the company’s affairs, consult with stakeholders and prepare a restructuring plan aimed at either returning the company to solvency or securing a better return for creditors.