Retail Food Group shares down 10 per cent to reach another new low ahead of June 30 deadline

As its June 30 Judgement Day approaches, Retail Food Group shares have taken another huge hit. Where will it end?

Shareholders are just one group of people crushed by RFG’s downfall. Photo: iStock

RETAIL Food Group shares have continued their decline, reaching a record low for the second consecutive trading day.

Shares in RFG closed 10 per cent lower than they did on Friday — already a new low — to finish at 13.5c.

More than 920,000 shares in the battered Southport franchisor were traded, four days out from the end of the financial year.

The dive followed reports in Nine Newspapers the company had sent inflated invoices to Gloria Jeans franchises for goods they hadn’t ordered.

RFG said the invoices were made in error and would be fixed.

The offices of RFG at Olympic Circuit in Southport appear very quiet. Picture Glenn Hampson

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It was the latest in an apparently unending series of blows to the company, which once traded at $7.70 per share with market capitalisation over a billion dollars.

Earlier this month, law firm Corrs Chambers Westgarth has announced it was exploring a possible class action on behalf of Michel’s Patisserie franchisees.

The company widened its already gaping losses in the first half of the financial year, posting a six-month $111.1 million net loss on decreasing revenue it said meant “the Group’s current financial position is unsustainable”.

It remains under investigation by the ACCC, was fingered as chief culprit of systemic exploitation of franchisees, has unsuccessfully tried to sell off some of its brands, drew more criticism for instructing franchisees to sell out of date food and is wholly at the mercy of its lenders.