Government has promised to use "all means" necessary to help almost 900 employees who were let go as part of the rescue plan agreed between Groupe Gad and the French courts.Gad's parent company, Cecab, made the case for the layoffs saying that "without significant restructuring, Gad's surplus production would have condemned it to going out of business."
It added Gad's difficulties were partly a result of it "struggling" to compete with rivals in northern Europe able to discount on prices due to wage levels being up to three times lower than in France.
French Minister for Agriculture Guillaume Garot said that "the urgency now is to allow each dismissed worker to find a job".
Gad, which has accumulated debts of around €100 million, went into administration in February. The company employs 1,700 staff, of which 889 are expected to be let go as part of the restructuring.
