Latest news with #DaybreakFoods
Daily Maverick
2 days ago
- Business
- Daily Maverick
Daybreak Foods: Chicken producer hopes business rescue will hatch a turnaround
Creditors and almost 3,000 employees may finally see some resolution as the first business rescue meetings for beleaguered chicken producer, Daybreak Foods, kick off next week. Daybreak Foods, which has been in the spotlight over the past two months for animal cruelty, mismanagement, failure to pay staff and failure to pay contractors, has successfully applied to be placed under business rescue. Under the Companies Act, business rescue practitioner Tebogo Maoto is required to convene the first meeting of creditors and employees within 10 days of his appointment. The first meeting of creditors will be held virtually through Microsoft Teams on Monday, 2 June at 10am. The first meeting of employees will also take place virtually through Microsoft Teams on Tuesday, 3 June at 10am. In a notice, Maoto said the formal agenda for the meetings would be communicated to all affected parties in due course. In the interim, affected parties may address any queries they have directly to Motau at [email protected] In a media statement, the Public Investment Corporation (PIC), a major creditor and shareholder in Daybreak Foods, said it was of the 'firm belief that the company can be rescued and must be rescued, and that business rescue is the best path to preserve the company's value and potential, saving approximately 3,000 jobs, and importantly, to realise returns for clients and their beneficiaries on their investment'. Maoto was formally appointed as the senior business rescue practitioner (BRP) of Daybreak Foods on Thursday, 22 May 2025, after the company was placed under voluntary business rescue two days earlier. Maoto has significant experience in the field of business rescue, turnarounds and corporate restructurings, both in South Africa and in cross-border mandates. This extends to the turnaround and restructuring of various non-listed companies, including York Timber, Adax Bioenergy (Sierra Leone), Karstern Boerdery and Premier Hotel OR Tambo. A statement from the company notes that the business rescue proceedings for Daybreak Foods will focus on stabilising its ongoing operations, while Maoto assists with the development of a turnaround strategy and finding solutions to the funding shortfalls of Daybreak Foods. The PIC has already undertaken several measures to contribute towards stabilising Daybreak Foods, which include the injection of R74-million in working capital, intended to address the company's immediate liquidity needs. Daybreak Foods' interim chairperson Dr Charlotte Nkuna commented: 'We welcome the appointment of the BRP as part of the collective effort, together with the Public Investment Corporation, to rescue the Company and save approximately 2,800 jobs. We are confident that the business rescue proceedings will help Daybreak Foods to achieve a credible turnaround plan in the interest of all our stakeholders.' Daybreak Foods has a legal moratorium on any legal and/or enforcement actions being instituted against it, while the company's board and the BRP prepare the necessary proposals to rescue the company from its financial distress. DM
IOL News
3 days ago
- Business
- IOL News
Daybreak Foods enters business rescue as financial troubles mount and 2,800 jobs hang in the balance
State-owned poultry producer Daybreak Foods has started business rescue proceedings Image: NSPCA State-owned poultry producer Daybreak Foods has entered business rescue due to financial difficulties with Tebogo Maoto appointed to lead efforts to secure funding and protect around 2,800 jobs. IOL previously reported that the company sought approval from the Public Investment Corporation due to severe financial problems made worse by the culling of underfed chickens and protests from workers over unpaid salaries. Last week, Johannesburg High Court issued a final order against Daybreak Foods, following legal action by the National Council of SPCAs (NSPCA) over allegations of animal cruelty. The ruling, handed down on Friday, compelled the poultry producer to implement a series of measures aimed at addressing animal welfare concerns at its Limpopo facilities. The court rejected Daybreak's claim that a R74 million cash injection from the Public Investment Corporation (PIC) had resolved the crisis. In a statement, Daybreak Foods said Maoto brings extensive experience in business rescue, turnarounds, and corporate restructuring, both within South Africa and across borders. 'The business rescue proceedings will focus on stabilizing operations while developing a turnaround strategy and addressing funding shortfalls,' the company said. Video Player is loading. Play Video Play Unmute Current Time 0:00 / Duration -:- Loaded : 0% Stream Type LIVE Seek to live, currently behind live LIVE Remaining Time - 0:00 This is a modal window. Beginning of dialog window. Escape will cancel and close the window. Text Color White Black Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Background Color Black White Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Transparent Window Color Black White Red Green Blue Yellow Magenta Cyan Transparency Transparent Semi-Transparent Opaque Font Size 50% 75% 100% 125% 150% 175% 200% 300% 400% Text Edge Style None Raised Depressed Uniform Dropshadow Font Family Proportional Sans-Serif Monospace Sans-Serif Proportional Serif Monospace Serif Casual Script Small Caps Reset restore all settings to the default values Done Close Modal Dialog End of dialog window. Advertisement Video Player is loading. Play Video Play Unmute Current Time 0:00 / Duration -:- Loaded : 0% Stream Type LIVE Seek to live, currently behind live LIVE Remaining Time - 0:00 This is a modal window. Beginning of dialog window. Escape will cancel and close the window. Text Color White Black Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Background Color Black White Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Transparent Window Color Black White Red Green Blue Yellow Magenta Cyan Transparency Transparent Semi-Transparent Opaque Font Size 50% 75% 100% 125% 150% 175% 200% 300% 400% Text Edge Style None Raised Depressed Uniform Dropshadow Font Family Proportional Sans-Serif Monospace Sans-Serif Proportional Serif Monospace Serif Casual Script Small Caps Reset restore all settings to the default values Done Close Modal Dialog End of dialog window. Next Stay Close ✕ Daybreak Foods was placed under voluntary business rescue on May 2025 after a resolution filed by its Board in terms of Section 129(1) of the Companies Act. 'We welcome the appointment of the BRP as part of the collective effort, together with the Public Investment Corporation to rescue the Company and save approximately 2 800 jobs," Daybreak Foods' interim chairperson, Dr Charlotte Nkuna said "We are confident that the business rescue proceedings will help Daybreak Foods to achieve a credible turnaround plan in the interest of all our stakeholders.' In terms of Section 133 of the Act, the poultry producer has also been granted a legal moratorium protecting it from legal and enforcement actions while the Board and BRP prepare proposals to rescue the company from financial distress. "The Daybreak Foods Board, in conjunction with the PIC, in its capacity as the shareholder and creditor, will support the BRP to develop and implement a sustainable business rescue plan that will be aimed at addressing its short and long-term funding needs, but also ensure future sustainability and profitability," the statement concluded. IOL Business Get your news on the go, click here to join the IOL News WhatsApp channel
Daily Maverick
23-05-2025
- Business
- Daily Maverick
Daybreak Foods business rescue — a new board fails to instil hope in workers
In a move that's part lifeline, part last rites, the Public Investment Corporation has thrown its weight behind Daybreak Foods' move into business rescue, announcing a freshly reconstituted board and a renewed — if slightly desperate — commitment to saving South Africa's embattled poultry giant. But workers remain unconvinced. On Monday, 20 May, the Public Investment Corporation (PIC) confirmed its support for the Daybreak Foods board's decision to enter business rescue, describing the process as 'the best path to preserve the company's value and potential, saving approximately 3,000 jobs'. With the company's finances resembling a henhouse after a fox visit, the PIC's R74-million cash injection is meant to keep the lights (and incubators) on while a business rescue practitioner is appointed to hatch a credible turnaround plan. Despite a flurry of official statements, a reconstituted board and the promise of business rescue, hope remains scarce on the factory floor at Daybreak Foods. Thousands of workers, partially paid for April, say this development has done little to lift their spirits. One anonymous worker told Daily Maverick, 'We don't have hope now. Our hope for Daybreak Foods is diminished.' They added that they had received only half of their basic April salary and nothing for their overtime. The worker said the company had not communicated anything about these delays, leaving employees in the dark. They are now awaiting their May salary, which is expected to be paid on Friday, 23 May, since the usual payday of the 25th falls on a Sunday. Another employee echoed this sentiment, saying, 'Things are very bad there. They are not being fully transparent with us, and there is no direct communication, so we do not have hope.' The employee said workers simply wanted the truth — no matter how grim — so they can understand the company's current position and know whether they have a future with it. The PIC, which holds the dual distinction of being both a major shareholder and creditor, has made it clear that Daybreak must be rescued, not just for the sake of the workers, but to 'realise returns for clients and their beneficiaries'. Meet the new board Before the feathers hit the fan, the PIC had already reconstituted Daybreak's board. The new line-up reads like a who's who of agriculture, finance and — crucially — damage control: Dr Cynthia Charlotte Nkuna (retained interim chairperson): A poultry vet with an MBA and a background in biologicals. If anyone can spot a sick chicken — or a sick balance sheet — it's her. Lehlohonolo Andrew Makenete (interim deputy chairperson): Agricultural economist and policy wonk. Tshokolo Petrus Nchocho: Development finance veteran, former CEO of the IDC and Land Bank. Kgampi Jack Bapela (retained): Agro-processing dealmaker. Esethu Ayanda Dazana (retained): Chartered accountant and transformation specialist. Brian Luthuli Mavuka (PIC): PIC's head of finance, because someone needs to keep an eye on the purse. Martinus Philipus de Jonge (PIC): Investment executive and former interim CEO of Daybreak — back for another peck at the problem. The board, together with the PIC, has pledged full cooperation with the business rescue practitioner to implement a 'sustainable turnaround strategy.' How did we get here? Daybreak Foods' decline unfolded over several years, marked by mounting financial strain, management instability, and operational breakdowns. Originally part of Afgri, the company was acquired by a PIC-backed BEE consortium in 2015, with high hopes for transformation and growth. However, by 2017, just two years after the acquisition, Daybreak began facing severe financial difficulties amid increased competition from cheaper imported chicken, governance challenges and operational mismanagement. The PIC assumed full control in 2017, but despite efforts to stabilise the company, including board changes and management reshuffles, Daybreak's liquidity worsened. By late 2024, the company had failed to repay R42-million owed to its largest contract grower and defaulted on a R100-million emergency loan. A requested R250-million bailout was declined by the PIC in early 2025, precipitating the resignation of CEO Richard Manzini and the executive team. This leadership vacuum triggered an operational collapse. Feed deliveries stopped, contracts fell through, and workers and livestock were left stranded. Efforts to shift consumer demand from frozen to fresh poultry were undermined by rising feed costs, avian influenza outbreaks and delayed funding. Animal welfare deteriorated drastically, culminating in the mass euthanisation of more than 350,000 chickens under horrific conditions. The National Council of SPCAs intervened with a court order to halt inhumane culling and enforce adequate feeding of nearly 600,000 starving breeder birds. Workers faced unpaid or partial salaries, forced weekend work without overtime pay and poor communication from management, with protests in early May met by the police using rubber bullets. Leadership instability was rife, with four CEOs in four years, legal battles with security firms, and the abrupt resignation of board chairperson Bojane Segooa in May 2025 after securing a R625,000 payout amid strikes and internal conflict. The crisis has since drawn the attention of the Department of Labour, the Congress of South African Trade Unions (Cosatu) and political parties like the Democratic Alliance (DA), which have called for urgent investigations into governance failures and PIC oversight. As Daybreak enters business rescue with a reconstituted board and renewed PIC backing, the challenge remains to restore financial stability, protect jobs and rebuild trust among workers and stakeholders alike. Daybreak Foods' slow unravelling is a stark illustration of the complex challenges facing state-backed enterprises, where financial pressures, governance lapses and social responsibility converge with profound consequences. The path forward demands transparency, accountability and decisive action to safeguard the livelihoods of workers, the welfare of animals and the stewardship of public funds in South Africa's poultry industry. DM
The Citizen
21-05-2025
- Business
- The Citizen
Business rescue for stricken chicken producer Daybreak Foods
Move backed by the PIC, which has appointed a new board at the company to bring stability. The PIC says it has taken measures to help stabilise Daybreak Foods, including providing working capital to address immediate liquidity needs. Picture: iStock The Public Investment Corporation (PIC) has reconstituted the board of directors at Daybreak Foods, which was placed into business rescue earlier on Tuesday (20 May). In a statement issued on Tuesday afternoon, the PIC, a major shareholder in Daybreak, notes that business rescue is the best path to preserve the company's value and potential and save the jobs of approximately 3 000 employees. The PIC notes it has already undertaken several measures to contribute towards stabilising Daybreak Foods, including the injection of R74 million in working capital intended to address the company's immediate liquidity needs. The PIC bought Delmas-based Daybreak, a major player in the poultry industry, in 2015. The company started facing financial difficulties in 2017, which have worsened over the years. By the end of 2024, the company faced severe liquidity issues and failed to pay suppliers and staff salaries, which continued into 2025. ALSO READ: Bird flu brings foul times: Chicken shortage and price hike loom in South Africa Board members The board of directors was reconstituted before the company was placed into business rescue to stabilise governance and operations, the PIC notes. Dr Charlotte Nkuna, a veterinary specialist, has been appointed interim chair, while Lehlohonolo Makenete, an agricultural economist, has been appointed interim deputy chair. The other board appointees are Tshokolo Nchocho, former CEO of the Industrial Development Corporation (IDC); Brian Mavuka, former acting finance chief at the PIC; and Martinus de Jonge, who previously served as interim CEO of Daybreak Farms. The PIC notes that the successful application to place Daybreak in business rescue 'paves the way' to appoint a business rescue practitioner who will develop a turnaround strategy for the business. 'In this regard, the business rescue practitioner will work closely with the Daybreak board of directors.' ALSO READ: Here's why chicken prices might increase soon This article was republished from Moneyweb. Read the original here.
TimesLIVE
20-05-2025
- Business
- TimesLIVE
Daybreak Foods placed in business rescue, hopes to save 3,000 jobs
The Public Investment Corporation (PIC), a major creditor and shareholder of Daybreak Foods, says it supports the Daybreak Foods board's decision to place the company in business rescue. The PIC said on Monday it was of the firm belief that the company can be rescued and that business rescue is the best path to preserve the company's value and potential, saving about 3,000 jobs and realising returns for clients and their beneficiaries on their investment. The PIC said the successful application to place Daybreak in business rescue paves the way to appoint a business rescue practitioner who will assist Daybreak to assess the extent of disruption to operations and produce a credible turnaround strategy for the business. The business rescue practitioner will work closely with the Daybreak board. 'The PIC has already undertaken several measures to contribute towards stabilising Daybreak Foods, which includes the injection of R74m in working capital that is intended to address the company's immediate liquidity needs.' Before the company was placed in business rescue, the PIC had reconstituted the board for Daybreak as part of interventions to stabilise governance and operations at the company. Members of the reconstituted Daybreak Foods board are: Dr Cynthia Charlotte Nkuna (retained, interim chair) Lehlohonolo Andrew Makenete (interim deputy chair) Tshokolo Petrus Nchocho Kgampi Jack Bapela (retained) Esethu Ayanda Dazana (retained) Brian Luthuli Mavuka (PIC), and Martinus Philipus de Jonge (PIC) interim CEO of Daybreak Farms. 'The Daybreak Foods board, together with the PIC, will fully co-operate with the business rescue practitioner to implement a sustainable turnaround strategy and plan to stabilise the business and ensure its viability.' TimesLIVE
