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Hundreds Of Red Lea Chickens Factory Workers Lose Their Jobs

‘Majority’ of staff informed

Hundreds Of Red Lea Chickens Factory Workers Lose Their Jobs Image: ABC/Twitter

More than 500 people are without jobs in Sydney’s West this afternoon, days after Aussie icon Red Lea Chickens was placed into voluntary administration.

Insolvency firm McGrathNicol said an “unsustainable financial position” has forced the closure of Red Lea’s Blacktown processing plant, slashing around 450 factory worker roles over the Easter break, AAP reports.

"The majority of staff have now been advised of their redundancies while a small number of employees will be retained on a temporary basis to support the orderly wind-down of operations," they said in a statement on Wednesday.

Employees from six company-owned retail stores have also lost their jobs, while the chain’s 22 franchises will remain operating for now.

The first creditors meeting is scheduled for Thursday April 12, with a second meeting in around a month’s time set to determine the future of the business.

“The immediate focus of the administration is to work with key stakeholders to ensure an orderly wind-down of operations and commence our investigation into the affairs of the Red Lea Group and the reasons for the its failure,” McGrathNicol added.

Founded in 1957 by Croation migrant John Velcich, the chain ran for six decades before it was placed into voluntary administration on March 29.