Spanish bakery group Panrico has temporarily suspended the pay of over 4,000 staff as it draws up a new business plan to stave off possible insolvency.
Panrico, owned by US private-equity firm Oaktree Capital Management, informed its workers of the measure earlier this week.
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According to Spanish reports, the freeze on pay was needed to ensure commitments to suppliers were met, a memo from Panrico’s management said. When contacted by just-food, Panrico declined to comment
The company is understood to be putting together a continuation plan, which it plans to finalise within weeks.
Oaktree became Panrico’s sole shareholder this summer, increasing its stake from 86%.
In 2010, Panrico’s creditors took control of the heavily-indebted group. Since then, Oaktree has increased its stake in the company in stages by buying up Panrico’s debt.
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By GlobalDataPanrico has also restructured its industrial operations to reduce its cost structure, while also increasing its focus on value-added brands.
