Embattled French poultry giant Groupe Doux is looking to sell a facility in Bretagne as part of its plans to ensure the company can function normally.
Doux, which last week obtained emergency funding totalling EUR17m (US$21.4m), told just-food today (25 June) that a decision from the French courts on whether it can sell the Finistere-based facility is expected tomorrow.
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A spokesperson for the company said the group is hoping to achieve EUR17m from the sale of the facility, but said it did not yet know who the buyer might be.
Doux, which went into administration earlier this month, last week received the necessary cash flow to guarantee its day-to-day running. Negotiations, however, are continuing to find the full capital necessary to see Doux through its six-month period under court protection and pay off arrears owing to breeders, which run into tens of millions of euros, which takes precedence over the refinancing of Doux’s debts.
The company has declined to disclose how much capital it requires to see it through the administration period.
In a statement on Friday, the group said it had implemented a “comprehensive” disposal plan in order to “safeguard” the group. Doux added that it had secured a further EUR20m in funding, to be paid today, but the spokesperson said information on the provider was “confidential”.
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By GlobalDataDiscussions for further funding from French investment banker Natixis are “ongoing”, the spokesperson said.
“Doux has to find money for the group to function because the process [of administration] is very expensive. Doux asked the court if it could sell a food factory and it will have the answer tomorrow.”
The spokesperson said the group was not looking to make any other disposals at the present time.
Last week, Doux appointed former Lactalis boss Michel Léonard as group CEO.
