The dairy giant has revealed it is open to offers from rivals for its assets or a possible takeover bid after posting a $370.8 million loss for the past financial year.

Suppliers and employees will have to wait until MG’s annual general meeting in October to find out whether it is considering selling the Koroit factory.

Daly’s IGA co owner Peter Daly said MG’s announcement would not deter plans to expand the supermarket, but there would be some uncertainty in the town. 

“It has been coming for about 12 months given the drop in milk price,” he said  “I guess you do fear for the future of the town and what is happening at the factory. But bearing that in mind we’re forging ahead with our development. We have full confidence in the town.”

Mr Daly said he hoped the Koroit factory remained operational given it was such an important employer for the town. “You just hope the board makes the right decision and secures its future because Koroit relies heavily on it,” he said.

“We know they’ve closed factories up north and that’s obviously a concern. It’ll be a worry for the next few months for the dairy workers and the suppliers. It’s a state-of-the-art facility and I don’t have any grave fears of it closing. I’d certainly love to see the MG brand stay.”

Poppies Cafe Takeaway owner Basil Kaladis said any business that relied on MG to survive was in trouble. “It’s just a shame,” he said. “Everyone is a bit puzzled about what is going on and what is going to happen. We get a lot of passing trade from the milk industry. 

“I reckon in the last six months there has been a drop off of people in town from MG. We’ve just got to grin and bear it – this is a good little town.”

Koroit Newsagency owner Bob Shanahan said it was unknown how the town would be impacted by the latest announcement.

“MG workers might come in and I say somewhat jokingly ‘still got a job this week’ as a way to break the ice,” he said. “We’ve just got to wait and see and keep coming into work bright eyed and bushy tailed at the counter.”