HARARE — OK Zimbabwe Limited, one of the country’s largest retail chains, has been placed under voluntary corporate rescue after its board concluded the company can no longer meet its financial obligations as they fall due.
The decision, formalised through a board resolution on February 23, 2026, marks one of the most significant corporate distress events in Zimbabwe’s retail sector in recent memory.
In a notice to all affected persons dated February 25, 2026, Harare law firm Wintertons – acting on behalf of the OK Zimbabwe board – confirmed that Bulisa Phillimon Mbano of Grant Thornton Chartered Accountants (Zimbabwe) has been appointed as Corporate Rescue Practitioner, with immediate effect.
The notice was distributed to all known creditors, employees, trade unions, and shareholders of the company.
According to the sworn statement filed by board chairman Charles Msipa, OK Zimbabwe’s troubles deepened dramatically after a rights offer approved at an Extraordinary General Meeting on July 17, 2025.
While the company raised US$20 million through the rights issue, improving its equity position and allowing it to pay down portions of its debt, the relief was short-lived.
“Suppliers have reduced credit extension and payment terms have been shortened to one week or a maximum of two weeks,” Msipa’s affidavit states.
As confidence among suppliers eroded, many stopped conducting business with the company altogether, unwilling to increase their exposure to a deteriorating debtor.
The consequence was stark: shelves emptied, revenue collapsed, and operations have now “virtually ground to a halt,” the board confirmed.
The company is deemed unlikely to service its debts within the next six months.
Despite the severity of the crisis, the board believes corporate rescue, rather than liquidation, remains viable. The company retains tangible assets including buildings and equipment, an established customer following, industry know-how, and a skilled workforce that the board argues can be leveraged to engineer a turnaround.
Under Section 122 of the Insolvency Act (Chapter 6:07), the Corporate Rescue Practitioner will investigate the company’s affairs, consult with stakeholders, and develop a business rescue plan. The plan will aim either to keep OK Zimbabwe operating as a going concern or, failing that, to secure a better return for creditors than an immediate wind-up would produce.
The board has also authorised Mbano to pursue working capital financing and to negotiate a compromise with legacy creditors, an acknowledgment that the path to recovery will require significant debt restructuring.
Corporate rescue proceedings typically place a moratorium on legal action by creditors, giving the practitioner breathing room to stabilise the business and develop a rescue plan. Creditors, employees, trade unions, and shareholders are expected to be consulted as Mbano assesses the full scope of the company’s liabilities and assets.
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