Future in doubt for Cappoquin Chickens
Vital funds now needed
The future of Cappoquin Chickens remains on a knife-edge as the O'Connor family try to buy back into their own company with the added funds of an English company, Derby Poultry.
Chicken growers themselves made last-minute attempts to raise money to invest in Cappoquin Chickens, but they failed.
The growers' co-op is understood to have approached a number of bodies with a view to raising funds, but no money was forthcoming.
Growers were due to meet representatives of Cappoquin Chicken and the O'Connor family last Thursday night. However, management failed to turn up because they were in protracted negotiations with Derby Poultry that continued long into the night.
It is understood an offer of €2m would be sufficient to secure the company, but a further €2m of working capital is needed to keep the processing plant going.
IFA Cappoquin growers chairman Ned Morrissey said the growers were very disappointed on Thursday night because they expected to be presented with a rescue package.
However, liquidator Aidan O'Donnell of Deloitte and Touche is continuing operations at the plant until talks with potential investors collapse.
"As long as he keeps placing day-old chicks into the houses there is still hope," said Mr Morrissey.
Cappoquin Chickens could not be sold as a going concern if production at the plant was stopped.
Amid the continuing turmoil of last week, the usual slaughter figure of 220,000 chickens was maintained.
However, breeders and growers are now producing chickens for the company without knowing whether they will be paid or not.
"If the company is to continue, producers must put birds into their houses," said Mr Morrissey.
"But producers have not even seen a business plan for the company, uncertainty exists over the timescale of payment and the fear is that they may not be paid at all," he said. In addition, up to 250 full-time and part-time jobs remain under threat at the west Waterford plant.
As well as the Cappoquin plant, the company has cold storage depots in Dublin, Galway and Limerick.
- Caitriona Murphy
