Premier Foods, owner of some of the best-known names on the supermarket shelves including Hovis, Mr Kipling, Branston and Sharwoods, is believed to be seeking a £700 million cash injection.

The funding is thought to be part of a package of measures being considered by Premier to pay off its debts of about £1.8billion.

There had been speculation that Alchemy Partners, the private equity group, was considering making an offer. This was followed yesterday by reports that a range of suitors including: Bain Capital, Blackstone and Permira as well as many of Premier's existing investors had been approached by Goldman Sachs, which is advising the company on its finances, to become an anchor investor. It is rumoured that the sale of a controlling stake in the company is an option.

Premier, which is expected to announce a new financial structure in the first quarter of next year, acquired the bulk of its debt in 2006 and 2007 when it bought RHM, the maker of Hovis bread, and Campbell's soups.

However, in October Premier had said that it would not consider issuing equity or equity-linked products after talks with CCMP Capital, the private equity house, had caused its share price to plummet.

Previously Premier has rejected a £250 million offer from United Biscuits to buy its Mr Kipling brand. Robert Schofield, Premier's chief executive, said: “Every man and his dog has rung me up to tell me he was interested in some part of my business. Nobody has offered anything that values them correctly.”

In November, Premier announced that it would cancel dividend payouts until its debt was under control and pushed back its covenant test from December 31 to March 31 — a move which cost it £4.9 million.

Premier, which has previously failed to find buyers for RF Brookes and Avana Bakeries, refused to comment on the refinancing bid this weekend.

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