Online Reporter
Business Reporter
Truworths Zimbabwe has been placed under provisional liquidation after the High Court ordered the discontinuation of corporate rescue proceedings, according to a notice published in the Government Gazette.
The development marks a major setback for one of the country’s most prominent retail brands.
Under the order, granted by Justice Paul Musithu, the corporate rescue proceedings were provisionally halted, paving the way for the firm’s winding up.
The court appointed Mr Rueben Mukavhi as the provisional liquidator, vesting him with powers provided under the Insolvency Act.
Interested parties and creditors have been called to appear before the High Court on the return date of October 28, 2026, to show cause why the court should not issue a final liquidation order.
Should the order be granted, the corporate rescue process will be permanently discontinued, placing the company under final liquidation, with Mr Mukavhi recommended as the final liquidator.
Creditors have been directed to lodge proof of their claims with either the provisional liquidator or the Master of the High Court on or before October 28, 2026.
Creditors who fail to meet the deadline risk exclusion from any distributions made prior to their claims being verified.
Simultaneously, all debtors owing money to the company have been directed to settle their debts or reach a formal payment plan with the provisional liquidator by the same date, warning that failure to do so will result in immediate legal recovery proceedings without further notice.
Anyone holding books, records, property, or other assets belonging to Truworths has been instructed to hand them over to the provisional liquidator immediately, according to the notice.
Listed on the Zimbabwe Stock Exchange (ZSE) in 1981, Truworths was once a dominant force in the country’s formal clothing retail sector, operating over 50 outlets nationwide alongside its subsidiary brands, Topics Stores and Bravette Manufacturing Company.
However, the retailer’s business model — heavily reliant on local currency credit sales — became increasingly untenable due to various economic factors, including the high cost of funding.
In July 2022, the company suspended Zimbabwean dollar credit sales amid low consumer demand and low volumes.
The company also faced intense competition from an expanding informal sector.
The influx of cheap imported garments and duty-free second-hand clothing (mabhero) undercut formal retailers burdened by high tax regimes and operating costs, leading to widespread branch closures across the country.
By early 2024, Truworths voluntarily suspended trading of its shares on the ZSE after failing to publish audited financial statements.
In August 2024, Crowe Advisory (Pvt) Ltd placed the business under corporate rescue in a bid to restructure its operations.
Commenting on the structural economic pressures during the crisis then, chief executive officer Mr Bekithemba Ndebele noted:
“High unemployment levels and low disposable incomes, exacerbated by inflation, have negatively impacted sales volumes, with customers turning to the informal market where prices are more competitive.”
Despite the corporate rescue framework aimed at protecting assets and negotiating with creditors, the company’s financial distress proved insurmountable, resulting in the High Court’s decision to move the retailer into provisional liquidation.
