Man behind RFG overhaul to take the reins
RETAIL Food Group managing director Andre Nell will leave the embattled company, as the man instructed with revitalising the hospitality franchise network is promoted.
Richard Hinson, who joined the company in January with the task of leading a strategic review, has been promoted to group chief executive officer effective immediately, according to a company announcement released to the ASX yesterday morning. The company, which counts Gloria Jean’s, Donut King and Crust Pizza in its extensive portfolio, has seen its share price crash since late last year.
It was trading as high as $ 4.40 in October, before plunging to $ 2.10 in December, and steadily falling to lows of about 78c.
Retail Food Group posted an $ 87.8 million first- half loss in March, a fall of $ 120 million from the previous corresponding period. Mr Hinson, a 30- year veteran of the retail food industry, said in a statement that the management team was “working hard to improve franchisee relationships and profitability”.
“We are revitalising the network to focus on our customers first; improving performance, driving innovation and improving communication and transparency with our franchisees,” he said.
But he said trade conditions continued to be tough, although he claimed franchisees were starting to see “a positive response”.
Former chief executive Tony Alford made headlines recently after offloading more than 7.5 million shares in the company.
Retail Food Group chairman Colin Archer said Mr Hinson was “gaining the confidence of franchisees” and claimed he had restored momentum to the business.