Senior business rescue practitioner, Tebogo Maoto, announced last week that the auction house would lead two key components of the rescue strategy following the publication of Daybreak’s business rescue plan on 22 August.
Daybreak is wholly owned and controlled by the Public Investment Corporation (PIC), the state asset manager on behalf of the government's retirement funds.
The plan, scheduled for stakeholder voting on 5 September, outlines emergency and reactivation phases designed to stabilise the company’s operations during this critical period.
A second rescue plan addressing the stabilisation phase will follow, focusing on securing long-term sustainability through strategic partnership.
“Daybreak Foods remains committed to rebuilding with transparency, accountability and sustainability,” Maoto said.
The 35.19ha property, which includes a complete 1,178 cubic metre hatchery formerly operated by Hubbard SA, is not essential to Daybreak’s operations and has no associated employees.
Daybreak Foods’ problems have been attributed to poor governance, operational failures and deepening financial distress. The company made headlines when it failed to feed
The PIC recently came under severe criticism after it injected more than R1.7 billion into the poultry company that was rocked by allegations of mismanagement and corruption.
Located on the Farm Essenhyrst in Howick in KwaZulu-Natal, the property sale will provide immediate funding while the search for a strategic equity partner continues.
Offers must be submitted by 2 pm on Friday, 12 September.
The auction house is simultaneously inviting expressions of interest from parties interested in acquiring or investing in Daybreak Foods, either wholly or partially. The objective is to ensure business continuity while preserving jobs wherever possible.
Daybreak employs over 3,000 people across its four farms.
With the continued support of stakeholders and partners, the company is confident in its ability to emerge stronger and more resilient.
Stakeholder support will prove crucial when the rescue plan is put to a vote on 5 September. Creditors, employees and shareholders must approve the proposal for implementation to proceed.
The two-phase approach enables immediate stabilisation while allowing time to negotiate strategic partnerships.
Daybreak Foods remains committed to rebuilding with transparency, accountability and sustainability. With the continued support of stakeholders and partners, the company is confident in its ability to emerge stronger and more resilient.
Tebogo Maoto
The strategic equity partner process reflects growing trends in SA agriculture, where foreign and domestic investors increasingly target distressed but fundamentally viable operations. Such partnerships often provide capital injection alongside operational expertise and market access.
The September timeline creates urgency around both the property disposal and strategic partner identification. Market conditions and seasonal factors in agriculture make swift resolution essential for maintaining operational viability.
Security makes the outcome significant beyond immediate stakeholders.
Industry observers will closely monitor developments, particularly given broader questions about the country’s agricultural competitiveness and sustainability.
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