Former CEO splashes $2m on RFG property
FLAILING franchisor Retail Food Group is now effectively the tenant of its former CEO Tony Alford and fellow former executive Alicia Atkinson, who have been revealed as buyers of RFG’s property at 18 Commercial Dr, Ashmore.
Property records reveal the pair, through their company WC92 Pty Ltd, paid $2.075 million for the 3510sq m property.
The agent behind the deal, struck at public auction, said RFG agreed to a 12-month leaseback of the site, with two six-month options once that expires.
Mr Alford and Ms Atkinson have been formally summoned to Canberra for the Federal inquiry into the franchise sector next month after refusing four previous requests.
The inquiry was called in the wake of allegations of damaging franchise models of companies including RFG, which some franchisees claim ruined their livelihoods.
Former managing director Andre Nell has also been ordered to appear.
Mr Alford also bid for RFG’s two other highvalue properties, including its headquarters at 1-3 Olympic Circuit in Southport, where he was outbid by a Sydney buyer.
Attempts by the Gold Coast Bulletin to contact Mr Alford and Ms Atkinson were unsuccessful.
RFG spokeswoman Belinda Hamilton said the company was aware its former executives were the new owners of the site.
Commercial property agent Martin Trautmann, a long-time broker of RFG’s property sales and purchases, said Mr Alford bought RFG’s vacant cold storage facility at 24 Octal St, Yatala for $2.31 million in February, but that sale fell through at settlement.
Mr Trautmann said a new buyer had signed a contract for that property in July for just under $2 million and that it had settled in September.
He said Mr Alford was one of many people on his list of buyers who he contacted when the RFG properties came on to the market. “We sold three out of three,” Mr Trautmann said. “RFG had four residential properties which we also sold.”
The Octal St property was the last of three commercial sites RFG said it was looking to sell as it scrambles to meet strict debt obligations.
Ms Hamilton said RFG’s new CEO Richard Hinson was focused on rebuilding trust and credibility with franchisees.
“Ultimately, their success is our success and we need to be working together closely, in order to improve not only our financial position but our reputation and that of our brands – which in turn affects all of our franchisees,” she said.
The company’s headquarters at 1-3 Olympic Circuit, Southport, sold to a company linked to Sydney businessman Bruce Baudinet for $3.8 million in November.
Another of Mr Alford’s companies, Yak Investments, sold the office and warehouse across the road at 4 Olympic Circuit to a company related to First National real estate agent Bob Rollington for $900,000 in July this year.
Yak Investments is directed by Ms Atkinson, Mr Alford and fellow former RFG chief financial officer Gary John Best.