More than 500 workers in sydney have had their jobs terminated after the collapse of Red Lea Chickens, which has been placed into voluntary administration after 60 years in business.
Workers from the Blacktown processing plant and Sydney retail stores were told their jobs no longer existed in an email sent to them over Easter and now face a wait for money owed.
The administrators say Red Lea’s financial position is unsustainable after the business’s investors withdrew funding and they have launched an investigation into the company’s affairs and the reasons for its financial failure.
The franchisee network of 22 stores will continue to operate with retailers considering options to secure alternate suppliers, but those in six company-owned stores are now out of work.
Connor Smith, who was a retail store manager for nine years, said his staff were in tears.
“They didn’t expect the closure to happen so suddenly,” he said.
“That was the killer.
“It would have been more professional if we were notified on a proper weekday, on a proper business day, and got a phone call.”
Many workers are questioning how they will pay rent or afford the basics as there is an immediate freeze on pays being deposited in accounts.
Wages owing and entitlements…
