Premier Foods acts after share price slump
FOOD giant Premier Foods had to take action to reassure the money markets after its share price slumped amidst concerns it was in financial difficulties.
The firm, which bought-out Campbell's and subsequently closed the long-standing Lynn factory and employs 404 people at a meat-free products factory in Methwold, saw its share price drop from 120p to as low as 85.25p before bouncing back to 108.75p, on Friday.
The slump apparently came on the back of concerns over its mounting debts – due in part to the Campbell's buy-out.
Premier issued a statement to answer concerns it was about to issue more shares to pay its debts, saying it was not contemplating the move – known as a rights issue.
Premier officially ended production at the flagship former Campbell's site in Lynn in December and is now in the process of selling the site.
It bought the former Del Monte factory in Methwold, after it folded in 2006, and now produces Quorn and Cauldron there.
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Weather for King's Lynn
Sunday 27 May 2012
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