Doux, one of the world's largest poultry producers, went into administration Friday after failing to reach an agreement with bankers, Reuters reports.
A judicial administrator has been selected to help with drawing up a plan to keep the poultry giant operating. The Doux group now has court protection from creditors, notably Barclay’s bank. Doux owes the bank €140 million.
Doux says it total debt is €340 million, 200 million being Frangosul’s share. The Brazilian company was recently sold to Brazil's JBS. The French government offered the group a cash injection of €350 million, money that Charles Doux, owner of Doux, rejected by ending negotiations.
The newly instated Socialist government wants to head off a wave of factory closures, 800 famers supply Doux and the company itself employs 3,400 individuals.
The EU subsidises Doux to the tune of €55 million in the form of export subsidies, making the company the largest beneficiary of EU farm aid France.
Doux’ major competitor, LDC has expressed an interest in buying a part of the group.