Hovis maker Premier Foods may be forced to sell off leading brands including Mr Kipling as the manufacturing giant wrestles with its £1.7bn debt burden.
Premier has reportedly turned to accountancy giant Deloitte to draw up a plan to reduce the company’s debt.
Premier could now be forced into a fire-sale of some of its household brands, with its Sharwoods, Branston and Quorn lines also touted for sale by some analysts in recent weeks.
Last month Premier saw its share price collapse amid concern about its debt levels among investors, although its stock posted a fightback last week to rebound by more than 20%.
Meanwhile, Burton’s Foods – the biscuit maker behind traditional favourites including Wagon Wheels and Jammie Dodgers – has been handed a £6m cash boost by its private equity owner after its losses almost doubled over the past year.
Duke Street Capital has ploughed £6m into the company after Burton’s saw its yearly losses spiral from £10.9m last year to a new mark of £19.6m.
Duke Street has also pledged to inject a further £6m into the company, which also makes Cadbury’s Fingers.
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