Premier Foods has “categorically” denied reports that it is planning to put Mr Kipling and other well-known brands on the block in a bid to reduce debts.
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Reports over the weekend suggested that the maker of Hovis and Quorn was considering selling off some of its most famous brands as it struggled to alleviate its huge debt burden.
The company had debts of GBP1.8bn (US$3.1bn) at the end of June due to acquisitions in 2007, including its purchase of rival UK food group RHM and the UK operations of Campbell Soup Co. Premier‘s debt levels compare to a market capitalisation of just GBP508.8m.
A spokesperson for Premier Foods told just-food today (20 October): “I can deny the reports categorically. We are not and do not need to sell off any of the business. Reducing debt is a priority for the company and it is already doing that.
“The reason the company has debt is because it bought RHM and Campbell. To sell of any companies would only serve to accelerate what we are already doing.”
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By GlobalDataPremier’s stock price dropped 15% on Friday to 29.75p but has since edged up 5.01% to 31.25p at 12 noon (BST) today.
