Red Lea goes into voluntary administration
A creditors’ meeting will be held on 12 April following the announcement that Red Lea Chickens is in voluntary administration. McGrathNicol has been appointed as administrator.
Headquartered in Blacktown, Red Lea Chickens has been in business for more than 60 years and employed more than 500 people. The company reared chicken on its Free Range Accredited farms in Wellington, Tamworth, Cooranbong, Mandalong and Menangle and processed the chickens in its plant in Blacktown where it employed 500 people.
Fresh and cooked chicken products were sold in 38 specialty locations and to supermarkets, specialty butchers, restaurants and hotels.
The franchisee network of 22 stores is seeking alternate suppliers since the announcement, while six company-owned stores are in administration.
The rumour mill asserts that competition with the major supermarkets which are selling chickens at a loss and Red Lea’s failure to develop new products and markets contributed to the company’s distress.
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