RFG chairman Colin Archer to step down from struggling Donut King owner

THE board of struggling Donut King owner Retail Food Group has gone through a major shake-up with the chairman stepping down after five years at the helm.

THE board of struggling Gold Coast food franchisor Retail Food Group has gone through a major shake-up with chairman Colin Archer stepping down after five years at the helm.

Mr Archer, who will also retire as a director of RFG, first joined the board a decade ago.

He said now the “appropriate” time to step down following the release of the FY18 results, which revealed a massive $306.7 million loss — much worse than the $87.6 million loss the company had previously flagged.

Shares were steady this morning in early trade at 49.5c — giving RFG a market capitalisation of $90.4 million.
RFG’s brands include Pizza Capers, Brumby’s Bakery, Crust Gourmet Pizza Bar, and more.

Mr Archer said the timing also enabled time for a handover period prior to the annual meeting.

RFG shareholders have seen value in the company eaten away following allegations of mistreatment of franchisees. Photo: iStock

He had previously announced his intention to retire at last year’s annual meeting, just prior to a series of media reports, which detailed allegations of poor treatment of franchisees.

GET FULL DIGITAL ACCESS FOR $3 A WEEK

The company’s share price and market capitalisation was shattered in the wake of the reports, which were released in December and RFG has indicated it may sell its most popular brands to cut debt.

The new chairman of RFG is independent non-executive director Stephen Lonie.

Stephen Lonie is the new chairman of RFG. Photo: Kit Wise

Mr Lonie, who has been on the board for the past five years, is a chartered accountant and director of listed companies MyState Limited, Corporate Travel Management Limited, and Apollo Tourism & Leisure Limited.

He is also chair of RFG’s audit and risk management committee and a member of the nominations and remuneration committees.

Mr Archer said he is satisfied that, with the executive and board changes, the company is in a position to carry out its turnaround strategies.

“New CEO Richard Hinson in particular has reinvigorated the company with enthusiasm, commitment, and his industry knowledge,” he said.

Richard Hinson took over as the new boss of RFG earlier this year. AAP image/John Gass

“Stephen Lonie is a highly respected and experienced chairman who has been instrumental in developing and implementing the turnaround strategies adopted by RFG.

“He has a range of relevant professional, business and corporate governance experience including specialist expertise in the agribusiness/food, business and financial services industries.”

Mr Lonie said he “fully appreciates” the challenges the company faces, which includes restoring value to shareholders, who have seen the share price plummet to record lows.

He said it has a clear strategy and a range of options it is exploring with its advisers, and he retains confidence in the current management team.

RFG also this morning announced the appointment of two new non-executive board members comprising David Grant and Peter George.

The former is a director of Event Hospitality and Entertainment Limited and Murray Goulburn Co-operative Limited, while the latter spent four years on the board of Optus.