Third firm plans to sue RFG

Weekend Gold Coast Bulletin - - BUSINESS -

A THIRD law firm is pre­par­ing to launch a class ac­tion against the com­pany be­hind Michel’s Patis­serie and Glo­ria Jean’s for its al­leged fail­ure to dis­close trou­bles within its fran­chise net­work.

Queens­land-based Re­tail Food Group’s mar­ket value more than halved in De­cem­ber 2017 when me­dia re­ports of mis­treat­ment of fran­chisees were first pub­lished.

Law firm Phi Fin­ney McDon­ald is seek­ing in­vestors who bought shares be­tween April 2017 and Fe­bru­ary 2018, and al­leges RFG failed to dis­close that its fran­chise model had ma­te­rial fi­nan­cial risks and the net­works were de­te­ri­o­rat­ing.

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