FRANCE: Administration extended again at poultry group Doux
French poultry processor Doux has secured another extension to its period in administration.
A court in the French town of Quimper yesterday (23 May) gave the company's management another six months in administration, which started last June.
The ruling is the fourth time Doux, which went into administration with debts of EUR430m (US$556.5m) has had its period in administration extended.
The company has restructured the business, selling off plants and modernising others. Earlier this month, however, Doux had to shut its last abbatoir for fresh products after it failed to attract a buyer.
A spokesperson for Doux said the renewed period in administration would include meetings over the possible move by French investment fund, Développement & Partenariat (D&P) to become the company's majority shareholder.
D&P has proposed to acquire Doux's debt from Barclays and take two-thirds of the French group's capital in return. The Doux family and BNP Paribas will account for the remaining third of the group's capital.
Last month, deputy CEO Jean-Charles Doux replaced his father, Charles, as the processor's chief executive. Charles Doux, who has spent over 60 years building the business, is still a director. Commodity costs were a key factor in Doux amassing the debts although the company ran up around EUR200m in debts from a failed venture in Brazil.
The spokesperson said Doux would also use the extension of the period in administration to try to continue to improve profits and secure better payment terms from its suppliers.
Sectors: Meat & poultry
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