France: Doux on verge of bankruptcy

The Doux group, France’s premier poultry supplier keeping more than 3,500 people employed, is on the verge of bankruptcy. France’s banks have been mobilised and are standing by.

Doux owes €437 million to creditors, and may default into receivership, pending a crisis meeting held this morning by Doux’ management.

The debt includes €200 million of Brazilian subsidiary Frangosul, which was recently sold to Brazil’s JBS, though without transfer of Frangosul’s debt.

France’s Prime Minister, Jean-Marc Ayrault, has stated on BFMTV, a popular news channel, that France’s banks are standing by to aide Doux and avert a bankruptcy.

Doux keeps more than 3,400 people employed mostly in the Brittany region of France, and 800 poultry farmers supply the poultry producer. Bankruptcy would seriously destabilize France’s poultry industry. Agriculture minister Stéphane Le Foll has said that the state will go to great lengths to prevent this and secure the situation for the 800 farms at risk.

Thursday saw the appointment of Jean-Charles Doux, son of Charles Doux CEO, as new chief operating officier.