Retail Food Group’s potential review waived by banks
Retail Food Group on Friday announced that a potential review of the business, which had been set to occur some time after February 28, has been waived, after it renegotiated its financial covenants with lenders.
The owner of Gloria Jean’s Coffee, Donut King and Brumby’s Bakery, among other franchise businesses, said its financial covenants have been reset for the period ending March 31 and will apply to the balance of the loan to October 31.
This will not impact guidance for FY19 underlying EBITDA, the struggling franchisor said, which it currently expects to be in the range of $45 million to $50 million, assuming full-year contributions from all business units and the realisation of forecast annualised restructuring benefits.
RFG said it is still exploring a range of options to reduce debt, including equity and other debt funding options, as well as potential asset sales.
The company previously said it was considering selling its Crust, Pizza Capers and Donut King businesses to pay down its debt quicker.