News / National
It's not Ok at OK Zimbabwe
2 hrs ago |
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Retail giant OK Zimbabwe has officially entered corporate rescue, effective 24 February 2026, after suppliers stopped extending credit and trading with the company. The board of directors passed a resolution on 23 February 2026 to voluntarily commence corporate rescue proceedings under Section 122 of the Insolvency Act [Chapter 6:07].
Bulisa Phillimon Mbano of Grant Thornton Chartered Accountants has been appointed as the corporate rescue practitioner.
In a sworn affidavit, board chairperson Charles Msipa highlighted that despite raising US$20 million through a rights offer approved by shareholders in July 2025, financial distress has deepened as suppliers drastically 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 stated.
The board resolution noted that a 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 said.
While part of the rights offer proceeds were used to pay down creditor debt, fund working capital, capital expenditure, and transaction costs, these measures proved insufficient to restore supplier confidence.
The board remains confident in the company's viability, citing valuable assets including buildings, equipment, human capital, customer following, and industry knowledge that could be leveraged to achieve a turnaround.
The corporate rescue notice was filed with both the Master of the High Court and the Registrar of Companies on 24 February 2026. All affected parties – including creditors, employees, trade unions, and shareholders – have been formally notified in accordance with statutory requirements.
The appointed corporate rescue practitioner will now investigate the company's affairs, consult stakeholders, and prepare a restructuring plan aimed at returning the company to solvency or securing a better return for creditors.
OK Zimbabwe was registered in 1953 under registration number 118/1953.
Bulisa Phillimon Mbano of Grant Thornton Chartered Accountants has been appointed as the corporate rescue practitioner.
In a sworn affidavit, board chairperson Charles Msipa highlighted that despite raising US$20 million through a rights offer approved by shareholders in July 2025, financial distress has deepened as suppliers drastically 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 stated.
The board resolution noted that a 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 said.
While part of the rights offer proceeds were used to pay down creditor debt, fund working capital, capital expenditure, and transaction costs, these measures proved insufficient to restore supplier confidence.
The board remains confident in the company's viability, citing valuable assets including buildings, equipment, human capital, customer following, and industry knowledge that could be leveraged to achieve a turnaround.
The corporate rescue notice was filed with both the Master of the High Court and the Registrar of Companies on 24 February 2026. All affected parties – including creditors, employees, trade unions, and shareholders – have been formally notified in accordance with statutory requirements.
The appointed corporate rescue practitioner will now investigate the company's affairs, consult stakeholders, and prepare a restructuring plan aimed at returning the company to solvency or securing a better return for creditors.
OK Zimbabwe was registered in 1953 under registration number 118/1953.
Source - The Herald
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