OK Zimbabwe On Brink Of Collapse: Enters Corporate Rescue Owing Suppliers US$24 Million

OK Zimbabwe Enters Corporate Rescue As It Owes Suppliers US$24 Million: What It Means For Iconic Retail Giant

Iconic supermarket chain OK Zimbabwe has been forced into corporate rescue, desperately begging for breathing space as it owes suppliers a whopping US$24 million (approx R444 million) and faces empty shelves in its remaining stores.

The retail giant, once a dominant force on Zimbabwe’s high streets, has finally buckled under the weight of a crippling liquidity crisis. In a formal notice dated February 25, 2026, company lawyers Wintertons confirmed that a resolution was passed to voluntarily commence corporate rescue proceedings. The move, effective from February 24, 2026, automatically halts all legal action against the company, giving it a temporary shield from its furious creditors.

The Shocking Collapse Of A Retail Giant

The numbers coming out of the company are nothing short of catastrophic. The firm’s problems spiralled after a failed attempt to raise a much-needed US$30.5 million (approx R564 million) lifeline. While shareholders managed to scrape together US$20 million (approx R370 million) in a rights issue back in August last year, plans to sell off property assets for the remaining US$10.5 million (approx R194 million) flopped dismally, leaving the company high and dry.

The situation on the ground is dire. Major suppliers, tired of waiting for their money, have either cut off credit or are demanding payment within a punishing 7 to 14 days. This has led to barren shelves across its network of stores, which has already shrunk from 71 to just 62 outlets. The company’s financial report for the period ending September 2025 paints a grim picture, revealing an astonishing 84% collapse in revenues, a staggering loss of US$17.8 million (approx R329 million).

Chairman Charles Msipa laid the blame squarely on the breakdown of trust with the people who stock the shelves.

“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.”

What Happens Next For OK Zimbabwe?

The corporate rescue practitioner, Bulisa Phillimon Mbano of Grant Thornton, now has just 45 business days to cook up a plan to save the sinking ship. This is likely to involve some very painful medicine. TheNewsHawks reports that this will likely include negotiating “haircuts” with creditors to reduce debt or pleading for extended payment terms. We could also see more store closures, fire sales of non-core real estate, and severe cost-cutting to try to right-size the bloated business.

Major shareholders, including heavyweights like the National Social Security Authority (NSSA), Old Mutual Life Assurance Company, and Stanbic Nominees, are now watching their investments hang by a thread. The company had previously begged suppliers for mercy, with a plea late last year that now sounds hauntingly desperate, as reported by newZWire.

“We appeal to all our suppliers to work with us…our success is your success.”

That deal was never reached. Now, the once-proud retailer battles for its very survival in a market increasingly dominated by the informal “tuckshop” economy, which is estimated to make up a massive 76% of all activity. This, combined with high energy costs and a currency that is all over the place, has created a perfect storm that has finally sunk the iconic chain.