"Premier Foods, which manufacturers a host of store cupboard favourites, from Branston pickles and Hovis bread to Bird's custard and Oxo gravy, saw its shares plunge by 54 per cent at one stage.
It has been hit hard by the economic downturn as shoppers ditch upmarket brands and "trade down" to supermarket own-label goods. It has also suffered from the dramatic increase in the cost of commodities, especially wheat prices.
The company was forced to issue a statement to the stock market saying it was not having problems paying back money it owes to its banks."
