Cacaolat is up for sale as part of Nueva Rumasa restructuring

Cacaolat is up for sale as part of Nueva Rumasa restructuring

Spanish food and drink firm Cacaolat will dismiss almost three-quarters of its workforce as it continues to struggle after the bankruptcy of its parent company.

A trade union official confirmed said Cacaolat will dismiss 277 of its 400 workers as part of a restructuring process brought on by the bankruptcy of Nueva Rumasa.

A bankruptcy court in Barcelona has authorized the sale of Cacaolat, which is expected to fetch EUR35m to help creditors recover up to EUR25m in debts.

According to the union official, the judge has set 23 July as the final date for interested suitors to table their bids.

The official said local dairy firms Ato-Casa and Leche Pascual, bottled water firm Vichy and brewer Damm have expressed interest in Cacaolat. Nutrexpa, which makes the well-known Nocilla chocolate spread, has bowed out of the race, the official said. None of the potential suitors were available for comment.

Cacaolat is one of 15 key food and drink businesses owned by beleaguered Nueva Rumasa, which is undergoing a major restructuring that could lead to some of its businesses filing for liquidation.

Another Rumasa subsidiary, dairy firm Clesa, announced it will axe 360 workers after failing to stay in business, burdened by a EUR800m "financial hole."

While Cacaolat operates under Clesa, the dismissals are being handled separately, the union official said.