Premier Foods PLC (LON:PFD) said it would review its strategic options for improving shareholder value following talks with its largest investors.
The company, whose brands include Mr Kipling and Angel Delight, also said two activist investors would join the board.
READ: Premier Foods blames “present business climate” as it pulls planned Ambrosia sale
Activists Daniel Wosner of Oasis Management, the second largest shareholder in Premier Foods, and Orkun Kilic of Paulson & Co Inc, the third largest, will become non-executive directors of the board.
Simon Bentley, the chairman of UK mobile cash operator Cash on the Move, will also join the board as a non-executive director. He was formerly the chief executive of Blacks Leisure Group and senior independent director of Sports Direct International PLC (LON:SPD).
Non-executive directors Ian Krieger and Jennifer Laing will leave the board.
The announcement comes just days after Premier pulled out of plans to sell its Ambrosia rice puddings and custards brand, blaming a difficult market.
Premier is currently seeking a permanent chief executive after Gavin Darby stepped down from the role in January amid shareholder pressure over a decline in the share price.
Finance chief Alastair Murray is leading the company until a successor for Darby is found.
Shares have lost nearly a third of their value since US food maker McCormick & Co abandoned a takeover approach in April.
As part of a two-year strategy launched in 2017, the group has been cutting costs by axing jobs and streamlining its warehousing and distribution network.
But efforts to turnaround the business have been undermined by pressure from retailers to lower prices of packaged food items amid tough competition.
Shares rose 1.8% to 37.87p in afternoon trading.