Retail Food Group reveals heavy losses, up to 200 store closures

Retail Food Group (ASX: RFG) has released its delayed half year report which confirms a "disappointing performance" with plans to close up to 200 outlets on the back of a net loss after tax of $87.8 million, compared to $32.7 million profit in the previous half year.

RFG, which operates food franchises such as Donut King, Gloria Jean's Coffee and Pizza Capers, Crust Pizza and Michel's Patisserie, was suspended from trade on the ASX on Thursday for failing to lodge its half year financial report.1

The company delayed the release of its results on Wednesday, saying it was waiting for its auditor to sign off on the report, as it also battles allegations that it mistreats its franchisees along with a falling share price on the back of a series of profit warnings in early 2018.

RFG's first half results to December 31, 2017, refers several times to "challenging trading conditions" while acknowledging its own "disappointing performance" as it outlined its business-wide review to turn the company around.

The company also booked non-cash writedowns and non-cash impairments totalling $138 million to cover the costs of its network analysis and closure program and the reduced book values of Michel's Patisserie, Pizza Capers and the Coffee Retail Division. Read more

Ben Hall - Business News Australia - 2 Mar 2018

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