Zimbabwean retailer OK Zimbabwe has formally entered corporate rescue following severe credit restrictions from suppliers that forced the board to acknowledge that “operations have virtually ground to a halt.” On February 23, 2026, the board voted to commence corporate rescue under the Insolvency Act, with proceedings officially beginning the next day. Bulisa Phillimon Mbano has been appointed as corporate rescue practitioner.
Despite a US$20 million rights issue last year, suppliers demanded cash upfront, resulting in an 84 percent revenue drop to US$28.26 million in the half-year to September 2025 and forcing 11 store closures. These developments have occurred against the backdrop of a challenging Zimbabwean retail environment, where informal competition, inflationary pressures, currency volatility, and rising operational costs have strained formal businesses.
In a statement seen by ZiGoats.com, OK Zimbabwe provided the following verbatim notice:
“You are hereby notified that the Board of Directors of the Company adopted a resolution on the 23rd of February 2026 in accordance with Section 122 of the Insolvency Act that the Company voluntarily commences corporate rescue proceedings and that Mr Bulisa Phillimon Mbano be appointed as the Company’s Corporate Rescue Practitioner.
A notice of resolution to commence voluntary corporate rescue proceedings, as contemplated in Section 122(2)(b) of the Insolvency Act, together with accompanying documents, was filed with the Master of the High Court and the Registrar of Companies on the 24th of February 2026. Attached are the relevant notices that were duly filed.
The Effective Date (the date corporate rescue proceedings began per Section 125(1)(a) of the Insolvency Act) is the 24th of February 2026.
In accordance with the requirements of Section 122(3)(a) of the Insolvency Act the following documents are published herewith:
4.1 The resolution passed by the Board of Directors of the Company; and
4.2 A Sworn statement of the facts relevant to the grounds on which the board resolution was founded.
Further and pursuant to the board resolution appointing Mr Bulisa Phillimon Mbano as the Corporate Rescue Practitioner, a Notice of Appointment of Corporate Rescue Practitioner was filed with the Master of the High Court and the Registrar of Companies in terms of Section 122(4)(a) on 25th of February 2026.”
The board indicated that corporate rescue is a strategic step to restructure operations, safeguard assets, maintain loyalty, and protect employment. Stakeholders are being assured that the company will use the time to stabilize its finances, restructure obligations, and return to a sustainable growth trajectory once market conditions improve.
This move highlights the fragility of formal retail operations in Zimbabwe, where supply chain constraints, limited credit lines, and economic pressures often combine to threaten established companies. Analysts note that corporate rescue offers a legal lifeline for distressed firms, allowing them to reorganize debt, negotiate with creditors, and attempt to preserve business continuity in a challenging market.
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