La Lauragaise, the firm formed out of the acquisition of Spanghero, the meat products company caught up in the horsemeat scandal last year, is to file a
request with the commercial court of Carcassonne to be placed under judicial administration.

CEO Laurent Spanghero said the move was designed "to save the business and its 100 jobs" through a takeover.

He explained that La Lauragaise had serious cash flow difficulties due to the refusal of the state-owned Banque Publique d'investissement (BPI), to support the recovery of the ready meals firm.

Spanghero said he had found two French candidates for the acquisition of La Lauragaise but did not reveal their identity.