CYPRUS: Major halloumi producer Pittas Dairy shuts down

Pittas Dairy industries ceased production as of Friday, despite staff reporting for duty, they were not able to start the day’s production as there was no milk available to work with.

According to press reports the company’s assets were frozen as the temporary appointment of the company’s official liquidators, tasked with drawing up a reorganization plan had expired.

Pittas was facing a difficult financial situation in recent months, with temporary liquidators appointed to prepare a reorganisation which, if approved, could set the company back on course.

However, after a series of postponements, a meeting between the company’s creditors and liquidators was held last week with the majority opposing the proposed rescue plan.

The 75 employees of the company have now requested, through their union representatives that they be handed dismissal notices so that they will be able to claim unemployment benefit. Employees have yet to receive their wages for December and January and their 13^th salary.

As a liquidation decree has not been issued, employees cannot claim benefits from the Insolvency Fund, which covers salaries up to 13 weeks.

Pittas Dairy Industries had an 80-year presence, while at some point the company controlled 48% of the local Halloumi market, with a 35% share of the squeaky cheese’s exports.

At its peak the company had some 200 employees, producing more than 100 dairy products.

The company’s financial problems started after a fire had entirely destroyed the company’s main factory facility back in 1999, problems which multiplied as competition grew.

The company's obligations amount to several million euros and due to the fact that in recent months the supply of raw materials was limited, its turnover was negatively affected.

The majority of Pittas Industries’ debt is owed to commercial creditors, employees and the Social Insurance Department.