October 4, 2007

Australia's Davis Poultry up for sale after incurring multi-million debt

One of the largest chicken and hen meat wholesaler in Australia, Davis Poultry, recently moved into liquidation.

Five parties are reportedly interested in buying the business.

The group now has 100 employees.

Apparently more than US$3 million is owed to the businesses' unsecured creditors. Earlier reports, however, suggested the figure is closer to US$13 million.

Liquidators Brooke Bird and Co say there has been one formal offer to buy the business, and four other parties are showing interest.

Davis Poultry was set up in 1983 and the company purchased its first poultry slaughter plant in 1996. It now has four slaughter plants in Victoria, Australia.

Higher feed prices in Australia, caused by drought and global price increases, are driving chicken producers out of the business.