Premier Foods seeks investment boost for Hovis
Troubled UK company Premier Foods announced that it is looking for outside investors for its Hovis and other bread brands. Sales for sliced bread have been falling and its brands have suffered greatly during the recession, according to a report by Financial Times.
Mexican bakery Grupo Bimbo is one of Premier's possible investors, since it has expressed interest in the company before, said the report.
Hovis, a bread brand that has been around for 123 years, is one of UK's most popular food brands. However, the recession has driven consumers to reduce their bread consumption, said Tim Eales, director of market research group IRI, as stated in the report.
To cut costs, Premier has turned to slashing 10% of its workforce by shutting down 3 bakeries and 2 mills. It has also sold some of its assets and restructured its management. It is now working on restructuring its capital plan for 2014, said Financial Times.