Premier Foods stocks rise as company announced 900 job cuts

Shares in Premier Foods have jumped in London today (November 20th) on news the company will be cutting 900 jobs at its bread division, while it will be closing two bakeries.

The firm – which makes Hovis loafs – said it would close its facilities in Birmingham and Greenford, west London, next year.

This follows the recent decommissioning of its bakery in Eastleigh in Hampshire.

Premier Foods has been selling off its top-name brands including Branston, Sarson's vinegars and Robertson's jam, which it claims are not "core" parts of its business, in order to cut its debts of more than £1 billion.

In March of this year its creditors have given it extra time to repay its debts.

Michael Clarke, chief executive of Premier Foods, said: "By simplifying our cost base, we can increase focus on improving efficiency, quality and service levels to help grow our core Hovis business."

At 12:15 GMT, Premier Foods shares were higher by 2.7 per cent on the London Stock Exchange reaching a total of 94.75p.

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