Tough times have taken its toll on Zacky Farms, the poultry producer owned by the eponymous family, which has filed for bankruptcy, while Greece’s Folli Follie is selling a majority stake in its travel retail operations.
Folli Follie, controlled by the Koutsolioutsos family, is selling 51% of its duty-free shopping division to Switzerland’s Dufry – a travel retailer operating in 44 countries.
The €200.5 million deal will see Dufry handling a network of 90 shops in 45 different locations, said a statement on 10 October. Folli runs duty-free shops through its subsidiary Hellenic Republic.
Folli’s chief executive, George Koutsolioutsos, who along with his family owns 38.9% of the parent family business, said the sale was “proof of confidence for the entrepreneurial environment in Greece and supports [the] country’s efforts in attracting new international investments”.
The group had 2011 revenues of €1.02 billion, 25% of which was credited to Hellenic’s operations. Folli is also well known for its retail outlets selling jewellery, watches and accessories.
Meanwhile, California-based Zacky Farms, which traces its roots back to the 1920s, filed for bankruptcy on 9 October. The family business listed debts of between $50 million (€39 million) and $100 million.
Set up by Samuel Zacky, who opened a shop selling live chickens in 1928, the group blamed its financial position on high cost of poultry feed, causing “significant operating losses”.
The family-run company, which has revenues of around $350 million and employs more than 1,500 people, said it is seeking to sell the business.
Zacky Farms operates as a poultry farmer, processor, distributor and wholesaler.