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Premier Foods 'selling brands to avoid liquidation'

Date Added: 10/10/2011  

A major British company is attempting to fight the threat of a winding up order by selling off branches of the firm to stay afloat.

Premier Foods is close to liquidation due to a number of bad decisions regarding purchases made by the manufacturer, which makes Hovis bread among other produce.

According to a report by the Daily Telegraph, Martin Deboo at Investec stated that Premier Foods has paid more than necessary for RHM, which is the owner of Hovis.

He said: "And because they were so leveraged, when the trading performance faltered their EBIT [operating profits] started to resemble the downhill of a ski slope."

Clive Black, analyst at Shore Capital, added that the decision to pursue an aggressive growth plan was "flawed" and compared it to watching a car crash.

Victor Buchanan, managing director of Pickering-based Bioflame, recently admitted the firm is going into liquidation, with 38 people set to lose their jobs as a result, reports the Gazette and Herald.

Need advice on Winding up Orders? Call 0800 9020123

Posted by Miles Pritchard

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