Dubai / International Desk: UAE-based food conglomerate IFFCO Group is facing creditor-led provisional liquidation proceedings, marking one of the most significant corporate distress cases in the Gulf food sector in recent years.
Thank you for reading this post, don't forget to subscribe!According to a report by the Financial Times, a group of lenders led by HSBC Holdings Plc has approached courts in the Isle of Man and Singapore to take control of the company and safeguard its assets.
The lenders have nominated FTI Consulting as provisional liquidator, a step aimed at protecting creditor interests while the company’s financial position is assessed. (Source Financial Times)
IFFCO, known globally for brands such as London Dairy, Tiffany and Noor, has been under financial stress for several months. The company carries an estimated $2 billion debt burden, which has become increasingly difficult to manage amid tightening financial conditions.
Efforts to stabilize the business included the appointment of Rothschild & Co. in 2025 to lead debt restructuring negotiations. However, talks with lenders failed to reach a breakthrough.
Reports also indicate that internal shareholder disagreements and recent board-level changes contributed to creditor concerns, prompting legal escalation
Industry analysts highlight that IFFCO’s challenges are not solely financial. The company has also faced operational disruptions linked to regional geopolitical tensions, particularly affecting supply chains in the Gulf region.
Disruptions in key trade routes, including the Strait of Hormuz, have increased logistics costs and delayed shipments, adding further pressure on businesses dependent on stable food import systems.
Provisional liquidation is a temporary, court-supervised process designed to preserve a company’s assets and prevent further financial deterioration while decisions about its future are made.
Importantly, this does not mean immediate closure, but it signals serious financial distress and increased creditor control.
Founded in 1975 by Abdul Razak Allana, IFFCO has grown into a major FMCG and agri-business group operating across more than 50 countries, with over 12,000 employees and a diverse portfolio spanning food, edible oils, packaging, and logistics