Chilean salmon-farming firm Australis Seafoods announced it will shutter its Torres del Paine processing plant, an action the company claims is directly due to the legal battle in which its owner – Chinese foodservice giant Joyvio – remains embroiled.
Joyvio accused the firm’s former owner Isidoro Quiroga and his inner circle of maliciously hiding information regarding salmon overproduction when the Chinese firm purchased Australis in 2018 for USD 921 million (EUR 872 million). In June of this year, Joyvio officially filed a USD 1.22 billion (EUR 1.16 billion) lawsuit against Quiroga.
Joyvio sustained CNY 1.1 billion (USD 150.5 million, EUR 142.5 million) in losses in 2022 and announced its plan to file suit against Quiroga in March 2023. The firm lost USD 33 million (EUR 31.2 million) in Chile alone in the first half of 2023 and has sought to cut costs through several actions, including staff reduction and renegotiation of debt, to respond to its trying situation.
The company said in a public statement released on 6 October that the closure of the plant is the latest consequence of the legal battle.
“This is a very sad situation and a difficult decision for everyone, but at the same time ...
Photo courtesy of Australis Seafoods
