Source: Troubled OK Zim closes Byo Lobengula St branch – herald
Sikhulekelani Moyo, sikhu.moyo@chronicle.co.zw
STRUGGLING retail giant OK Zimbabwe has closed its Lobengula branch in Bulawayo. This follows a plunge into “choppy waters” that has forced the 83-year-old retail chain to shut down several outlets across the country.
Among the operations already affected are the Food Lovers Borrowdale and Avondale branches in Harare, whose franchises were not renewed. Several OK-branded outlets have also closed, including Robson Manyika, Glen Norah, Kuwadzana Express, Mbare, and Mabelreign. Outside of Harare, the retailer has shuttered its Chitungwiza Town Centre and Entumbane branches.
OK was placed under corporate rescue in February amid mounting financial, debt, and stocking challenges.
Despite raising US$20 million through a rights offer approved by shareholders in July 2025, the company’s financial distress deepened after suppliers drastically reduced credit extensions.A board resolution dated February 23, signed by all directors, noted that limited stock across stores triggered a significant decline in revenue and cash flow.
“As a result of not having 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 and fund working capital, capital expenditure, and transaction costs. However, these measures proved insufficient to restore supplier confidence.
Despite the setbacks, the board expressed confidence that the company remains viable.
They cited valuable assets—including buildings, equipment, human capital, a loyal customer base, and industry expertise—that could be leveraged to achieve a turnaround.All affected parties, including creditors, employees, trade unions, and shareholders, have been formally notified in accordance with statutory requirements.
The corporate rescue practitioner is currently investigating the company’s affairs, consulting with stakeholders, and preparing a restructuring plan aimed at either returning the company to solvency or securing a better return for creditors.
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