A French court has accepted a rescue plan for ailing pork giant Gad involving around 900 job cuts.
Gad’s parent company, Cecab, said: “Without significant restructuring, Gad’s surplus production would have condemned it to going out of business.”
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It added Gad’s difficulties were partly a result of it “struggling” to compete with rivals in northern Europe able to discount on prices due to wage levels being up to three times lower than in France.
Gad, which has accumulated debts of around EUR100m (US$135.6m), went into administration in February. The company employs 1,700 staff.
One of its two abattoirs – located at Lampaul-Guimiliau in Brittany – will close, as will a cold meats plant and Gad’s HQ. The company will operate from a single site where almost 350 jobs could be created.
Had the court rejected the plan, Gad would have faced liquidation.
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By GlobalDataGad posted a 2012 turnover of EUR453m and processed 2.4m pigs.
