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.
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.
mthobisi.nozulela@iol.co.za
IOL Business