One of the UK’s biggest poultry supplier is reported to be in talks to access millions of pounds of funding as it grapples with “perfect storm” caused by labour shortage and supply chain crisis.
According to recent media reports, 2 Sisters Food Group’s parent company Boparan Holding is in advanced talks with hedge funds about securing additional financing to help it weather ongoing labour shortages and supply chain challenges.
Boparan Holdings, which is headed by the ‘chicken king’ Ranjit Boparan, is said to be in advanced negotiations with several hedge funds about providing around £50 million of extra liquidity to the company.
Sources close to the talks said last week that the talks with financiers were expected to result in a deal in the coming days.
The identities of the new funding providers is unclear, but is expected to provide additional support to 2SFG’s trading during the crucial Christmas period.
The reports of UK’s biggest poultry supplier seeking funding highlights the squeeze that has been exerted on food producers amid the toxic cocktail of labour and raw material shortages, and accelerating inflation.
The news comes a month after Boparan said last month that food in Britain is “too cheap” and the era is coming to an end.
“The days when you could feed a family of four with a £3 chicken are coming to an end. We need transparent, honest pricing. This is a reset and we need to spell out what this will mean,” he said.
“Food is too cheap, there’s no point avoiding the issue. In relative terms, chicken today is cheaper to buy than it was 20 years ago.”
2 Sister Food Group employs about 18,000 people in the UK, making it one of the country’s biggest privately owned companies.