500 jobs lost in Sydney's west with Red Lea Chickens in administration

Jean-Francois Monier/AFP/Getty Images

Red Lea Chickens is closing its fresh and cooked chicken business, shedding 500 jobs in Sydney’s west, as the company goes in to voluntary administration.

McGrathNicol partners Barry Kogan, Jason Preston and Kathy Sozou have been appointed as administrators.

“Due to the financial position of the companies, we regret to advise that the Administrators are unable to trade the business and have no alternative other than to undertake an orderly wind-down of operations,” according to a notice on the company’s website.

The business, with a processing plant at Blacktown, more than 500 employees and 38 dedicated Red Lea Chicken stores, has been running for more than 60 years.

Retail store manager Connor Smith says many workers are questioning how they will pay rent because of a freeze on pays being deposited in accounts.

“And the worst thing is I can’t do anything about it,” he told the ABC.

Smith says the failure may have been partially due to supermarket competitors such as Coles and Woolworths.

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