We are signalling today that we have the plan, we have the people.

Chief executive Bill Grimsey

Founder Malcolm Walker left the company after a row over the sale of shares ahead of a profit warning, and new chief executive Bill Grimsey was forced to issue a series of profit warnings last year.

The group's share price fell 45% in 2001.

On Wednesday, the company said sales at the 760 Iceland stores were still falling - down 3.7% in the first two months of 2002.

Sales at wholesaler Booker, also owned by Big Food, were down 2.1% over the same period.

Rescue plan

Big Food intends to fund its three-year recovery plan through a sale and leaseback deal on Iceland stores and new funding from banks and the City.

Mr Grimsey said the plans marked a new phase in his strategy to resurrect the business after a year spent "concentrating on rescuing the company".

"We inherited a company that did not have a plan, wasn't investing in Booker and had no controls inside the business," he said.

"We are signalling today that we have the plan, we have the people.

"The management team we have needs to be judged from today."

The core Iceland frozen food range is to be improved after the failed forays into the organic market, but Mr Grimsey said more fresh food would also be introduced.

Shares in Big Food Group stood 7.25p lower at 122p in mid-morning trade.