LEGAL | Staff Reporter, Australia

Retail Food Group denies administration rumours

Read their full statement here.

Retail Food Group has denied a report in the Courier Mail that suggested that administrators could be called in as soon as next week.

“RFG confirms that this article is inaccurate and unfortunately, no approach was made to RFG to verify any aspects of the article whatsoever, before it was published. On an underlying basis, the Company remains profitable and there remains strong support for our brands," RFG chief communications officer Belinda Hamilton said in a statement sent to QSR Media. "Inaccurate media articles like this have an impact on our staff, our suppliers, our shareholders and our franchisees, and frankly that’s not good enough."

The operator, which owns brands that include Donut King, Michel's Patisserie and Gloria Jean's Coffees, reported a $111 million loss for the first half of FY19 along with 93 store closures, citing the cumulative impact of ongoing difficult retail trading conditions, outlet closures, investment in restructuring activity, prevailing negative sentiment regards franchising, and others.

Currently restructuring to reduce debt, RFG recently defended their goodwill figure, stressing that their brands are "still trading profitably."

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