Country Foods: more indigestion

Cape Town- Things are going from bad to worse for AltX-listed Country Foods, with news on Wednesday that its fruit juice business had been snatched away.

In an announcement to shareholders, Country Foods said Chester Finance - which presumably provided finance to the company - took 100% of the issued shares in Fruitime Fruit Juices as part of a settlement agreement.

The announcement also indicated that Country Foods' Mediterranean Fish Centre in Jules Street, Johannesburg, had been put under judicial management. The company said it was not in a position to oppose an urgent liquidation application.

Last month, Fin24.com reported that Country Foods' Mediterranean Deli in Fourways had closed down.

Right now Country Foods looks a shadow of the company that listed in 2007.

The biggest blow came in December 2008, when Fin24.com reported that Country Foods' export mushroom business Edulis had been placed into liquidation. The division could no longer service loans taken from micro-lending specialist African Dawn.

Other ominous developments outlined in Country Foods' latest announcement to shareholders included the resignation of KPMG as the company's auditors, and the resignation of director PB Swanevelder.

Acting CEO James Anderson resigned from the board in February after the company's annual general meeting (AGM), while Merchant Sponsors resigned as the firm's designated adviser.

Country Foods said the board was doing its best to find new directors. "It is, however, difficult to convince suitable persons to join the board under these circumstances."

At the AGM an attempt to vote Country Foods' founder, major shareholder and former CEO Rob Casaletti back onto the board did not receive sufficient shareholder support.

The company said a number of restructuring alternatives were still being investigated.

- Fin24.com