The Public Investment Corporation (PIC), a major shareholder in Daybreak Foods, has supported placing the troubled poultry producer under business rescue to avoid liquidation and protect 3,000 jobs. The PIC believes the company, which supplies around 7% of South Africa’s poultry, can still recover. A business rescue practitioner will now assess Daybreak’s operations and develop a turnaround plan, working closely with the restructured board. The PIC has already provided R74 million in emergency funding to address immediate cash shortages and stabilise the business.
Daybreak’s financial troubles became public last year when it failed to pay suppliers and staff on time. The situation worsened when animal welfare groups intervened after reports of nearly 600,000 chickens starving at its facilities. The PIC’s cash injection helped cover salaries and prevent further harm to livestock, but the company still requires a full restructuring to survive. A newly appointed board, including former IDC CEO Tshokolo Nchocho, will oversee the rescue process alongside the PIC.
Meanwhile, incoming PIC CEO Patrick Dlamini, set to take over in June, faces the challenge of cleaning up the corporation’s unlisted investments, including Daybreak. Dlamini, previously CEO of the Development Bank of Southern Africa, has been tasked with improving governance and performance in the PIC’s riskier portfolios. His appointment comes at a critical time as the PIC seeks to restore confidence in its investment strategy while safeguarding jobs and food supply chains. The success of Daybreak’s rescue will be an early test of his leadership.