The company behind the Cuisine de France range, Aryzta, is to issue new shares to raise €800m in fresh capital.
The Swiss- and Irish-listed group says the proceeds will be used mainly for debt reduction.
Arzyta has debts of over €1.6 billion.
The company's share price has plunged since the start of the year, wiping about €200 million off its value.
Today alone, Aryzta shares closed 11.7% lower in Dublin - leaving it down around 78% since the start of January.
Aryzta Chief Executive Kevin Toland said the new capital "will provide Aryzta with the means to continue to take the necessary steps to re-position the business and deliver on our strategy.
"Over the medium-term, we expect to generate significant cash flow which will be applied towards continued net debt reduction and to resource selective growth opportunities."
The company also issued a trading update this morning, saying trading in the fourth quarter of its 2018 financial year is in line with expectations and expects a EBITDA for the full year of between €296m and €304m.
In addition to the announced capital increase, Aryzta said it remains committed to its previously announced €1 billion deleveraging plan, comprising at least €450 million of asset disposals and the balance from cash flow generation.
