Ailing French poultry giant Doux has said it would spend EUR35m (US$45.7m) to modernise its plants as a local court allowed it more time in administration.
Doux has pledged to “optimise” production at its sites, particularly in Brittany, as it looks to reshape a business that fell into administration June amid EUR430m in debts and rising costs.
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The company had been given six months to turn itself around but on Friday (30 November) a court extended Doux’s period in administration to 19 February.
Doux has sold off or closed its fresh poultry assets. The company said it had shown the court it could operate profitably. It is focusing on prepared products and export markets. The company plans to market its Pere Dodu brand more in France and has identified the Middle East as a key export destination for its products.
Doux forecast 2013 revenues of EUR600m and a “positive operational result”.
The company sold off its fresh poultry business in September, with rivals LDC and Glon Sanders each acquiring two plants. Three other sites were closed.
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By GlobalData
