News 968 views last update:Feb 25, 2016

Court decides future of French pig abattoir GAD

The future of the French abattoir and meat plant of GAD in Josselin, Brittany, is still far from clear.

GAD, which is majority-owned by the Breton pig holders cooperative Cecab, last month tabled for liquidation at the Trade Court, the so-called Tribunal de Commerce, in Rennes, France.

The French supermarket chain Intermarché has put a take-over offer on the table via its meat division SVA Jean Rozé, which would save at least a number of the 950 jobs involved. The court will decide this week whether to accept that offer, extend the insolvency for a few more weeks or declare the company insolvent now.

The problems at GAD are directly connected to the serious situation the pig industry in this part in France is in. Over the last few years, the company has build up losses of over 20 million euro, which also made it impossible to invest in some highly needed improvements of its facilities.

Last year, GAD already closed its abattoir in Lampaul-Guimiliau with the loss of 800 jobs. A number of those employees had been redeployed in Josselin but now the axe is likely to fall there too.

Intermarché, one of the bigger supermarket chains in the country, has been interested in GAD before. Shortly after GAD deposited its insolvency request, Intermarché was again mentioned as a likely candidate for Josselin. Rumours circulated for weeks, but only recently the company confirmed that it has send the court a letter of intention.

Further details have not been made public, nor is clear whether the letter of intention is a takeover bid as such. Intermarché says it will make a further decision "if all the legal and other conditions have been made." However, the company had promised to invest 20 million in the site if a take-over will take place.

Or register to be able to comment.