Melody Teh
Money & Banking

One of Australia’s largest chicken suppliers shuts down after 61 years

More than 500 workers have lost their jobs as one of Australia's biggest chicken suppliers Red Lea Chickens goes into voluntary administration after 60 years in the business.

Hundreds of workers from the Blacktown processing plant and Sydney retail stores were told over Easter in an email that they no longer had jobs. With an immediate freeze on pay, the workers are waiting for money owed.

The franchisee network of 22 stores will continue to operate, 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."

Zagorca Ciolac said she has been working for the family-owned business at its Blacktown plant for 33 years.

“It's difficult ... now we have to go look for another job,” Ms Ciolac told Network Ten on Tuesday.

The company, which has been operating since 1957, was founded by John Velcich, a teenage refugee from Croatia, who sold the company in 2016 due to shrinking profits.

Tags:
News, Money & Banking, Red Lea, Jobs