OK Zimbabwe Suspends Worker Salaries as Corporate Rescue Crisis Deepens

OK Zimbabwe has suspended all salaries and wages for employees with immediate effect after its Joint Works Council resolved to halt payroll payments as part of ongoing corporate rescue proceedings aimed at stabilising the struggling retail chain.

The resolution, signed on May 22, 2026, states that the company “will, therefore, not be running any payroll beginning the month of May 2026 until further notice and in any case until such time that business and revenue return to profitable levels.” The move effectively means workers are expected to continue working without pay while the company attempts to recover financially.

The decision was approved by Joint Works Council Chairman Alex E. Siyavora, National Workers Committee Chairperson for managerial staff Isaya Mutema, National Workers Committee Chairman Givemore Dondo, and Corporate Rescue Practitioner Bulisa Mbano of Grant Thornton Zimbabwe.

According to the resolution, the salary suspension is intended to help stabilise the business during the corporate rescue process. “The suspension decision is an attempt to stabilize the business enroute to full recovery and mitigate the impact of current poor performance and revenue,” the resolution states.

The Joint Works Council further stated that the measure was being implemented “pursuant to the corporate rescue proceedings” and was aimed at turning the company around and restoring profitability. The council acknowledged the seriousness of the decision, describing it as “a difficult and uncomfortable measure but a necessary intervention in our efforts to turn around the business.”

The resolution also stated that the company had reached an agreement with employees to suspend salaries and wages. However, the wording has raised concerns over whether workers had meaningful bargaining power during the corporate rescue process given the financial difficulties facing the retailer.

OK Zimbabwe entered corporate rescue on February 24, 2026, after the company’s board of directors held an emergency meeting a day earlier and unanimously agreed to appoint Mbano as Corporate Rescue Practitioner. The rescue proceedings were initiated after the company experienced severe financial and operational challenges that affected its ability to continue normal business operations.

Financial figures released during the rescue process show the scale of the retailer’s decline. Revenue reportedly fell from US$245 million to US$40 million in the 11 months ending February 2026, representing an 84 percent decline. During the same period, units sold dropped sharply from 208 million to 32 million.

The company was also facing significant debt obligations. Current liabilities reportedly stood at US$38.7 million against current assets of only US$12.8 million, leaving the retail chain unable to meet some of its financial commitments. As part of early rescue measures, the company closed 15 underperforming stores, leaving 54 outlets still operating across Zimbabwe.

OK Zimbabwe remains one of the country’s largest supermarket chains with branches in major towns and cities nationwide. The company has for years played a key role in Zimbabwe’s retail sector, serving thousands of customers daily and employing large numbers of workers in stores, warehouses and administrative departments.

The latest developments are expected to place further pressure on employees and their families as uncertainty continues over the future of the company and its workforce. The Joint Works Council said it would ensure compliance with labour laws governing the salary suspension and related adjustments during the corporate rescue proceedings.

The corporate rescue process is expected to determine whether OK Zimbabwe can return to profitability or whether additional restructuring measures will be required in the coming months. The company has not yet announced when salary payments may resume, saying payroll will only return once business operations and revenue improve to sustainable levels.