Retail Food Group stocks [Gloria Jean’s, Donut King and other high-profile brands] hit 10-year low on $88m loss and 200 stores to be closed

Retail Food Group sinks on $88m loss and 200 stores to be closedRetail Food Group’s (RFG) shares sunk to a 10-year low on Monday, as investors reacted negatively to a series of pessimistic announcements.

Key points:
Retail Food Group shares sunk by more than 40pc in early trade, Monday
RFG posted a first-half loss of $87.8 million, after writing down $138 million in assets
The company will close down up to 200 Gloria Jean’s, Michel’s Patisserie, Donut King, Brumby’s and Crust stores.
It is facing a potential class action from disgruntled franchisees
The troubled company โ€” which owns the Gloria Jean’s, Michel’s Patisserie, Donut King, Brumby’s Bakery and Crust Pizza Bar franchises โ€” plans to shut down up to 200 of its stores by mid-2019.

RFG did not specify how many stores from each of its franchises would be closed down.

The company blamed “unsustainable rent”, “declining shopping centre performance” and a “sharp decline amongst domestic franchise sales and renewals” as the main reasons for its “disappointing performance”.

via Retail Food Group stocks hit 10-year low on $88m loss and 200 stores to be closed – ABC News (Australian Broadcasting Corporation)