OK Zimbabwe (Pvt) Ltd, once a dominant force in the country’s retail landscape, has succumbed to its financial woes, plunging into voluntary corporate rescue proceedings. The move comes after months of struggling with working capital constraints, raw material shortages, and creditors refusing to extend credit lines due to delayed payments.
The company faced a daunting funding gap of $30.5 million, which it attempted to bridge through a rights offer, raising $20 million. However, plans to sell properties to cover the remaining $10.5 million fell through, leaving a gaping hole in its finances. Despite selling two of five properties, the funding shortfall persisted, forcing OK Zimbabwe to seek refuge in corporate rescue.
In a bid to stay afloat, OK Zimbabwe closed multiple branches, slashed head office staff, and engaged creditors to resume supplies with partial debt payments. The company managed to reduce overheads by 35%, targeting a further 15% reduction by December. However, these efforts proved insufficient to reverse the company’s fortunes.
The OK Zimbabwe board of directors resolved to commence corporate rescue proceedings on February 23, 2026, in accordance with Section 122 of the Insolvency Act. Bulisa Phillimon Mbano has been appointed as the Corporate Rescue Practitioner. The company has filed relevant documents with the Master of the High Court, signaling the commencement of proceedings, effective February 24, 2026.
Everything was pointing South for OK Zim. The previous directors oversaw the demise of the company. The new directors and the executive had a mountain to climb.
So sad the giant is falling.