Retail Food Group’s (RFG) shares sunk to a 10-year low on Monday, as investors reacted negatively to a series of pessimistic announcements.
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 — which owns the Gloria Jean’s, Michel’s Patisserie, Donut King, Brumby’s Bakery and Crust Pizza Bar franchises — 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”.