Gold Coast food franchisor Retail Food Group appoints Peter George to the role of executive chairman

BARELY two weeks since flailing Gold Coast food franchisor made its last change to its board structure, the Southport-based company is back at it again.

BARELY two weeks since flailing Gold Coast food franchisor made its last change to its board structure, the Southport-based company is back at it again.

The latest announcement is that new chairman Peter George, who was the second appointed to the post in one month, has taken on the role of executive chairman on a 12-month contract.

The new post means Mr George will take a role in the day-to-day running of the company.

Mr George took over from Stephen Lonie on October 26, just over one month after Mr Lonie was appointed chair on September 25.

RFG has gone from a stockmarket heavyweight to struggling minnow in less than 12 months. Photo: iStock

Mr George’s salary will be $500,000 per year including superannuation.

RFG last month said Mr George was recruited to the board as a turnaround specialist for the beleaguered franchisor, which has seen its share price and profit smashed in the wake of allegations of mistreatment of franchisees.

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The company’s annual report revealed it did not open a single new outlet in the second half of the past financial year.

It said a possible market recapitalisation and asset sales remain on the table for the company, which remains at the mercy of its lenders.

RFG unveiled a $306.7 million full-year loss for FY18, much worse than it previously flagged.

Richard Hinson was appointed to lead struggling food franchisor Retail Food Group earlier this year. (AAP image/John Gass)

RFG CEO Richard Hinson, in a statement to the ASX this morning, said Mr George is the “executive chairman RFG needs right now”.

“As he is a turnaround expert with considerable experience in capital markets, I look forward to working with him closely and seeing the positive impact that his experience will have on RFG’s business and its franchisee customers,” he said.

Mr George said his role would be to support the board and CEO to steer the company back to a position of improved performance and financial stability.

“RFG still has a way to go in restoring its financial position and shareholder value, but I see a great deal of opportunity ahead for the company and look forward to sharing my turnaround experience to help get RFG to where it needs to be — quickly,” he said.

Retail Food Group has not ruled out selling some of its brands, including Pizza Capers, to cut its mountain of debt.

“RFG’s turnaround strategy, and options to address RFG’s balance sheet challenges, are the board’s utmost priority, and my assumption of an executive role is further evidence of that focus.”

Investors responded positively to the news, sending RFG shares 12 per cent, or 4.5¢, higher to 41¢.