One of the largest poultry companies in the world, Doux Group of France is on the verge of bankruptcy. The company was placed under judicial administration on Friday after failing to reach an agreement with its banks and suspending payments to creditors.
Reuters reports the company has a debt around 340 million Euros including 200 million in Brazil from its 1998 acquisition of Frangosul. Last month Doux leased Frangosul to JBS.
In France, Doux employs 3,400 and contracts with more than 800 poultry growers. The Prime Minister and Agriculture Minister have both stated the government will go to great lengths to prevent the company from going under.
Doux is one of the largest recipients of E.U. export subsidies including 55 million Euros in the last fiscal year.