Zim GBC News | Business Correspondent
HARARE – In a dramatic turn of events for one of the country’s largest retail chains, OK Zimbabwe has been placed under corporate rescue with effect from February 24, 2026, following a severe liquidity crunch exacerbated by a loss of supplier confidence.
The board of directors made the decision on February 23, invoking Section 122 of the Insolvency Act, after it became clear that the company could no longer secure goods on credit from its suppliers. This has led to empty shelves and a catastrophic drop in revenue.
Board Chairperson Charles Msipa confirmed that the situation deteriorated rapidly despite a recent capital injection.
“The company’s financial position has worsened considerably, even after we successfully raised US$20 million through a rights offer that was approved by shareholders in July 2025,” Msipa said.
He explained that the retail giant’s operational model has been crippled by suppliers’ tightening credit terms.
“Suppliers have significantly reduced the credit they are willing to extend and have shortened payment terms to just one or two weeks. Many have stopped trading with us altogether because they are not prepared to risk further losses,” Msipa added.
The lack of stock has brought business operations to a near standstill.
“Due to the shortage of products in our stores, we have experienced a major drop in revenue and cash flow. Business operations have almost stopped because the shelves are not fully stocked,” the board noted in a statement.
While the US$20 million raised last year was used to service debt, support daily operations, and cover overheads, Msipa conceded that these measures were insufficient.
“These efforts were not enough to restore the suppliers’ confidence in our ability to pay within the new, stricter terms,” he said.
Despite the crisis, the board believes the company is salvageable.
“We are confident that OK Zimbabwe can still recover. The company possesses valuable assets, including prime real estate, equipment, a team of experienced staff, a loyal customer base, and deep industry knowledge,” Msipa stated.
Bulisa Phillimon Mbano of Grant Thornton Chartered Accountants (Zimbabwe) has been appointed as the corporate rescue practitioner. Mbano will now undertake a comprehensive review of the company’s finances, consult with creditors and other stakeholders, and prepare a recovery plan.
The primary goal of the corporate rescue process is to either return the company to profitability and solvency or to secure a better return for creditors than would be achieved through immediate liquidation.
OK Zimbabwe, a household name established in 1953, now faces an uncertain future as it attempts to navigate the country’s challenging economic headwinds and rebuild trust with its suppliers.
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