Well-known retail giant in serious trouble in Zimbabwe

OK Zimbabwe, which was started in 1942 and dominated retail in the country for years, is in such financial trouble that it cannot pay its employees.

The company opened its store along First Street in Harare in 1942 and the second branch along Jason Moyo Avenue in Bulawayo in 1952.

It showed strong growth and, with the help of numerous acquisitions and mergers, created a nationwide network of 49 OK Stores.

“The last 83 years have seen the expansion of the group through organic growth and diversification,” it said.

“The business has since diversified to become a leading retail giant offering an assortment of products.”

The company also operates eight Bon Marche’ Stores, catering to high-end shoppers, and eight OKmart Stores operating on a hybrid retail and wholesale model.

It used to operate three stores under the Food Lover’s Market brand. However, as part of the ongoing corporate restructuring thrust, it closed two of these outlets.

OK Zimbabwe Limited’s annual report for the 2025 financial year showed that not all was well at the company.

Its store estate decreased from 74 to 69, its customer base declined from 34 million to 22 million, and its employee count decreased from 4,116 to 3,311.

These declines filtered down to its finances, with revenue for the year declining from $511 million to $245 million.

Earnings Before Interest, Taxes, Depreciation, and Amortisation (EBITDA) plummeted from $40 million to -$5 million.

To keep the lights on, OK Zimbabwe Limited relied on debt. Borrowings increased from $3.5 million to $8.0 million in a year.

The reports told the story of a company in significant economic distress, marked by currency instability, liquidity constraints, and a resulting working capital funding gap.

OK Zimbabwe temporarily suspends employee salaries

On 22 May 2026, the joint works council of OK Zimbabwe approved the temporary suspension of payroll.

The process started on 23 February 2026, when OK Zimbabwe’s board held an urgent meeting to consider the present difficulties and the appropriate action.

After deliberations, the board unanimously adopted a resolution in terms of the provision of Section 122 of the Insolvency Act.

It voluntarily commenced corporate rescue proceedings and was placed under the supervision of a qualified corporate rescue practitioner to restore it to a good position.

The Joint Works Council met on 22 May 2026 and decided to suspend OK Zimbabwe’s payroll and compensation structure.

The suspension decision is an attempt to stabilise the business en route to full recovery and mitigate the impact of the current poor performance and revenue.

It has agreed with its staff to suspend all salaries and wages with immediate effect and will not be running any payroll from May 2026 until further notice.

“This is a difficult and uncomfortable measure, but a necessary intervention in our efforts to turn around the business,” the company said.

“The Joint Works Council shall ensure compliance with relevant labour laws governing such adjustments,” it added.