Premier Foods, a UK-based food company, said that it is not planning to sell its Hovis bread business, and it seeks to further strengthen the unit.
The company has faced a series of transactions such as management changes, refinancing and asset disposals to help reduce its debt, built up through the acquisition of several brands, including Homepride and Fray Bentos.
In March 2012, it renegotiated its bank debt and received an extension for its repayment deadline from 2013 to 2016; however, it is reportedly said to experience higher pension and financing costs from January 2014.
Premier CEO Gavin Darby shied away from a sale of the brand, which recently underwent a restructuring process, eliminating 1,000 jobs, reported Reuters.
"I tend to come from a background of trying to grow things, so we are working hard on a growth strategy for Hovis," he added.
The company did not comment directly on the plans; however, it said that options were kept open.
Darby said that the company seeks to expand its key brands in Britain and commenced talks with various overseas companies over partnerships.
"There are a number of companies like Premier in some big countries that want to co-operate, so there may be opportunities to either sell their brands or them distribute ours. That's the kind of thing we are working on but it's early days," Darby added.
