Buyout of Cappoquin Moving a Step Closer

IRELAND - A buyout that could save hundreds of jobs at a key poultry processing plant, Cappoquin Chickens, is in sight.

16 September 2008

3 minute read

Europe

The Co Waterford plant is in liquidation after snowballing financial problems. But it is believed that a British food company is about to complete the purchase of the west Waterford plant, in conjunction with a group of local farmers.

The Irish Examiner says that a full inspection of the site has already taken place and a “make-or-break” meeting is scheduled for later this week between the liquidator and the interested buyers. Up to 250 full-time and seasonal staff work at Cappoquin Chickens, which has operated just outside the town for more than four decades.

However, dozens of chicken breeders, rearers and growers, as well as hauliers and suppliers, also depend on the company for their livelihoods.

The company went into liquidation at the beginning of the month and the court-appointed liquidator was given six weeks to operate it as a going concern.

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"There seems to be a positive vibe coming out of it at the moment, but nothing is signed or sealed yet. We’ll just have to wait and see what happens this week. We can do nothing else at the moment."

David Lane, SIPTU representative

With about four weeks of that time period left, time is running out for a buyer to be found for the plant, which is reported to be worth up to €2 million. It is thought that another 1m would need to be ploughed into it to maintain its viability.

There was no comment yesterday on the sale from the O’Connor family, who owned Cappoquin Chickens before it went into liquidation.

However, it is understood that British-based Derby Poultry and a group of local growers are set to agree a deal to take over the business.

“All I can say at the moment is that the liquidator is keeping it going as a going concern,” said IFA poultry chairman and supplier Ned Morrissey.

“If he stopped, it would be a very bad sign, but the fact that he’s continuing is a good sign in itself. We’d be very hopeful that it will work out.”

Workers at the troubled factory have vowed to continue working as normal. SIPTU representative David Lane said yesterday that they were hopeful about saving the jobs.

“There seems to be a positive vibe coming out of it at the moment, but nothing is signed or sealed yet. We’ll just have to wait and see what happens this week. We can do nothing else at the moment,” he said.

The company is one of the biggest employers in the region.