Daybreak Farms Reassures Stakeholders Amid CEO Exit and Liquidation Rumours

Amid rising speculation over its financial health, Daybreak Farms has moved to dispel concerns about its future, affirming that the company remains a going concern despite the recent resignation of its CEO, Richard Manzini.

The black-owned poultry producer, which processes around one million birds per week, issued a statement on Thursday addressing media scrutiny and concerns over potential liquidation.

Daybreak Farms Denies Liquidation Claims

“Regarding recent media reports, we can confirm that Daybreak is not being liquidated. We value our relationships with all stakeholders, including Shoprite, and appreciate their ongoing support,” the company stated.

These remarks follow a Business Report article earlier this week highlighting financial struggles at the company, as well as the Public Investment Corporation’s (PIC) silence regarding an alleged request for a R250 million loan. Speculation is rife that the PIC, Daybreak’s largest shareholder, declined the loan request, prompting Manzini’s sudden departure.

However, Daybreak Farms clarified that Manzini had resigned in February to pursue another opportunity, while two other executives also left—one due to health reasons and the other for personal career goals.

“We appreciate Mr. Manzini’s contributions during his tenure and his commitment to ensuring a smooth transition. He will remain available to support the business until May,” the company said.

Concerns Over Corporate Stability

While Daybreak assured stakeholders that not all executive committee (exco) members had resigned, the exit of key leaders has raised questions about the company’s stability.

“Our chief financial officer (CFO) and chief people officer (CPO) remain with the company, and we are committed to maintaining stability and continuity,” Daybreak added.

The company failed to comment on whether the PIC would still provide financial assistance. The PIC, which manages assets for the Government Employees Pension Fund, Unemployment Insurance Fund, and Compensation Commission, has yet to respond to media queries.

Similarly, Shoprite has remained silent on allegations that Daybreak has been selling poultry at fire-sale prices, potentially undercutting competitors.

Corporate Governance Under the Spotlight

Daybreak Farms has been under intense scrutiny since allegations of financial irregularities surfaced in recent years.

In 2021, a forensic investigation uncovered a R138 million fraud scheme, linked to a joint venture with Hestony Transport under former CEO Boas Seruwe. The findings painted a picture of corporate mismanagement and corruption, drawing comparisons to State Capture tactics.

Since then, Daybreak has made corporate governance reforms, including a board overhaul in 2022 and the appointment of a new executive team. Four non-executive directors were also added to strengthen oversight.

Despite these efforts, concerns persist about financial transparency and shareholder involvement, particularly regarding the PIC’s role in Daybreak’s future.

What Lies Ahead for Daybreak Farms?

While Daybreak maintains that it is not facing liquidation, uncertainty remains over its financial stability, corporate leadership, and ongoing governance challenges.

With fresh allegations expected in the relaunched Sunday Independent this weekend, the company may face further scrutiny. Stakeholders will be watching closely to see how Daybreak navigates this period of transition and whether it can regain investor confidence.\

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