RFG's talks to sell Donut King, Crust and Pizza Capers with potential buyer collapses
The company’s chairman said the brands continue to provide “solid earnings”.
Retail Food Group (RFG) announced that negotiations to sell its Donut King brand and pizza chains Crust Gourmet Pizza and Pizza Capers to a potential buyer have ended.
The franchisor, which also owns the Gloria Jean’s Coffees, Brumby's Bakeries and Michel's Patisserie brands, said in an announcement to the ASX that a formal binding agreement could not be reached with the said party “on terms which the Board considered were in the best interests of the company as a whole.”
"Our Donut King and QSR brands continue to provide solid earnings contributing to the company's underlying profit. The potential sale of any of these assets must be at a price not only acceptable to our Board but in the best interests of our shareholders," RFG executive chairman Peter George said..
RFG’s potential asset sales have been in the works to pay down its debt faster, and has previously said it was considering equity and other debt funding options.
The company recently renegotiated its debt covenants with National Australia Bank and Westpac.
