An English poultry company is to meet representatives of Cappoquin Chickens to discuss a possible rescue bid, it was revealed today.
Derby Poultry Products, which considered buying a share in the debt-ridden firm two months ago, is now understood to be interested in a takeover.
Representatives of the company will meet with the liquidator and former management of Cappoquin tomorrow.
The company, which is one of Ireland’s oldest poultry processors, went into liquidation last week after it revealed massive losses of up to €7 million.
The European Commission is expected to make a decision potentially tightening proposed food labelling legislation later this month. Officials in Brussels are examining whether to close a controversial loophole that allows changes to country of origin.
The Irish Farmers' Association claimed cheap poultry imports passed off as Irish due to lax labelling laws have hit producers such as Cappoquin Chickens hard.
Minister for Agriculture Brendan Smith said the Commission had examined draft regulations aimed at clearly stating the country of origin on all poultry products.
Earlier this week, the High Court gave the liquidator appointed to Cappoquin permission to continue trading for another six weeks.
Liquidator Aidan O’Connell of Deloitte Touche said he hopes the company would process and sell its stock of 1.3 million chickens, which would earn more than €500,000 euro.
PA