French poultry processing firm LDC has submitted a proposal to acquire poultry company Doux, which is currently suffering from losses.

based in Brittany, Doux employs 1,200 people and is planning to file for insolvency, with the case hearing set to occur next week, according to Reuters.

The takeover bid comes after Ukraine-based MHP revealed earlier this month that it is engaged in negotiations with Doux, which is on the lookout for potential buyers amidst reluctance from owners to invest more funds into the loss-making firm.

Doux has faced stiff competition from Brazilian chicken producers in its main Middle Eastern markets in recent years.

A major contributor to the company’s situation is the removal of EU export subsidies.

The company’s majority shareholder, agricultural cooperative Terrena, has been holding discussions with a French government restructuring body to pursue the sale of the business.

Meanwhile, the news agency stated that MHP is set to submit a formal bid for the acquisition of Doux.

"The move is expected to save 285 jobs and the new production facility will create around 430 jobs."

The Ukrainian firm is planning to invest €76m to develop fresh chicken for the French market. To carry out the strategy, construction of a new factory would occur in Brittany.

Under the plan, the company will undertake restructuring of the frozen chicken export business.

The move is expected to save 285 jobs and the new production facility will create around 430 jobs.

According to Terrena, up to €100m is required to reorganise Doux’s business model.
In the past two years, the poultry company suffered losses to the tune of about €35m per year.