Aller Petfood will leave the Turkish market as a producer after the bankruptcy of its Turkish division.
Aller Petfood entered the Turkish market in 2014 and became the first international pet food producer in the market. Aller Petfood entered into a contract with Petfood to rent its factory, and take over the trading of its brands and service of its existing customers. The contract with the largest of the customers was through Petfood’s holding company, Amazon.
According to a report, Amazon began to hold back all payment to Aller Petfood from its client, putting severe strain on Aller Petfood’s Turkish division and draining the division’s cash flow. The division was forced to stop deliveries to Amazon, and ultimately declare the Turkish division bankrupt.
“This is in no way the plan we had when entering the Turkish pet food market,” said Henriette Bylling, Aller Petfood Group’s CEO. “The situation was out of our hands and we sincerely apologize for all inconveniences caused to our business partner. We still strongly believe in the Turkish pet food market and will continue servicing it from our other division.”
Aller Petfood says it will take any necessary legal actions related to the situation.
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