Daybreak Foods seeks PIC approval for business rescue as financial crisis escalates

DAYBREAK Foods has initiated a search for the Public Investment Corporation's (PIC) approval to enter Business Rescue, a decision prompted by mounting financial difficulties which have been exacerbated by a shocking culling of underfed poultry and protests from employees demanding their overdue salaries.

- BANELE GININDZA

In an official response to Business Report on Wednesday, corporate affairs specialist Nokwazi Ngcongo confirmed that DayBreak Foods was grappling with significant financial constraints that have hindered its operational capabilities.

Recognising the critical juncture at which the company finds itself, the board is exploring avenues to implement business rescue, pending the active participation and agreement from shareholders.

"The Board has extensively communicated with the Public Investment Corporation (PIC), the company's shareholder, and made numerous requests for funding to support operations, including feed for birds and payment of salaries, and continues to engage the PIC in hope of a positive response," Ngcongo said.

The company has faced severe disruptions in its operations, resulting in an inability to meet its financial obligations, including staff payments and supplier settlements.

Ngcongo stressed that DayBreak Foods was fully aware of how these challenges impacted employees’ livelihoods.

She also acknowledged recent challenges related to animal welfare at its poultry farming operations, including instances where birds went without feed due to financial constraints, resulting in cannibalism and subsequent culling.