Retail Food Group chairman Stephen Lonie replaced on board of Gold Coast franchisor by Peter George after just one month

RETAIL Food Group has been hit with more upheaval, with chairman Stephen Lonie stepping down after just one month in the top job. His replacement has already been announced.

STRUGGLING Gold Coast food franchisor Retail Food Group has appointed its second chairman in just over one month.

The Southport-based Donut King owner said today that former Optus director Peter George was elected to replace veteran board member Stephen Lonie, who was only appointed chair on September 25 — the same day that Mr George joined the board as non-executive director.

The company, in a brief statement to the ASX, said the election of Mr George was part of a “broader turnaround strategy”, which included “significant board renewal”.

RFG 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.

The company did not open a single new outlet in the second half of the past financial year.

A possible market recapitalisation and asset sales still remain on the table for the company.

RFG has seen plenty of changes at the top of its executive ranks this year. Pictured is CEO Richard Hinson who was appointed to the position in January. Picture: AAP

He previously led the restructuring of commercial printer PMP Limited when he was managing director between 2012 and 2017 and was non-executive director of Optus Communications from 1994 to 1998.

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Mr George said: “RFG has strong foundations in its business model and retail brand systems. My focus is on effectively executing the already developed turnaround strategies to return RFG to stability and profitable growth and add further impetus to the group’s efforts to restore value for shareholders.”

RFG’s share price has fallen from $4.71 to as low as 39.5¢ in the past year. Photo: iStock

In his final director’s interest notice, Mr Lonie, who has also stepped down from the board as a director in addition to chairman, declared he held 54,195 shares worth $21,948 based on the current share price of 40.5¢.

He first joined the board in 2013.

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