OK Zimbabwe shuts Bulawayo branch as crisis deepens
Supplier credit cuts and low stock levels continue to disrupt operations
ZIMBABWE – Struggling retailer OK Zimbabwe has closed its Lobengula Street branch in Bulawayo, adding to a growing list of outlets affected by the company’s worsening financial position.
The shutdown follows a series of closures across the country as the 83-year-old supermarket chain grapples with declining sales amid debt pressures and supply shortages.
In Harare, the company has already lost its Food Lovers Market franchises in Borrowdale and Avondale after failing to renew agreements, while several OK-branded outlets, including Robson Manyika, Glen Norah, Kuwadzana Express, Mbare, and Mabelreign, have also ceased operations.
Beyond the capital, additional closures have been recorded in Chitungwiza Town Centre and Entumbane, reflecting the retailer’s shrinking footprint amid difficult trading conditions.
The company entered corporate rescue in February 2026 after financial constraints intensified, with suppliers withdrawing credit lines and leaving stores unable to restock essential goods.
Corporate rescue and supply breakdown
According to a board resolution dated February 23, limited product availability across branches led to a sharp drop in revenue and cash flow, effectively stalling daily operations.
The company had earlier raised US$20 million through a rights issue approved in July 2025, but the funds, which were allocated to debt repayment, operational costs, and capital expenditure, failed to restore supplier confidence.
During the first half of February 2026, the situation escalated when key suppliers halted deliveries over unpaid balances, rapidly depleting inventory and cutting off income streams across multiple stores.
As a result, the retailer sought protection under the Insolvency Act, allowing it to restructure under the supervision of a corporate rescue practitioner who has since taken control of operations.
Outlook and restructuring efforts
The Zimbabwe Stock Exchange suspended trading of the company’s shares on February 24, 2026, the same day the corporate rescue process formally began.
Despite the setbacks, the board maintains that the business can still recover, citing assets such as property holdings, equipment, workforce capacity, and an established customer base as foundations for a possible turnaround.
The appointed practitioner is currently reviewing the company’s financial position and engaging creditors, employees, and other stakeholders while preparing a restructuring plan to restore viability or improve returns for creditors.
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