Attempt to salvage poultry plant fails; The global credit crunch After Panic Monday it's Lose-day Tuesday for banks.

Byline: By CIARAN MURPHY 

A SMALL town was devastated yesterday after its chicken factory shut shedding 240 jobs.

Cappoquin, Co Waterford, was reeling from the news after staff were told they will be laid off within six weeks.

The High Court was told over the summer the company had debts of about EUR7million.

Attempts were made to salvage the firm but a rescue package failed.

Bird flu, rising prices for chicken feed and cheaper imports from Asia were blamed.

The plant's closure will heavily impact on the local economy - Cappoquin Chickens pays out between EUR6million and EUR7million in wages each year, while EUR1.5million is paid to chicken producers.

The Irish Farmers' Association confirmed earlier this month growers and breeders were owed more than EUR1million since the firm went into examinership.

Waterford TD Brian O'Shea said the closure would come as "devastating blow" to the entire community of West Waterford.

He added: "The closure will affect not just those employed directly, but also growers and other suppliers who rely on the company for their own survival."

The Labour Deputy called for action to help those who lost their jobs.

Mr O'Shea said: "There is an urgent need now for the Government to mobilise the resources already at its disposal to assist people in training and up-skilling."

Meanwhile, Fine Gael deputy John Deasy accused the Government for failing to intervene in the rescue bid at the factory.

He said: "There has been no recent Government involvement at any level in attempts to save the 250 jobs."

The news comes a day after 50 job cuts were announced at Honeywell Transportation in Waterford city.

This comes in the wake of 100 redundancies at the Waterford plant three months ago.

CAPTION(S):

GRIM Workers leave Cappoquin Chickens yesterday Pic: PATRICK BROWNE