Retail Food Group to offload Molendinar site

STRUGGLING Donut King operator, RFG — which has seen its share price hammered in the wake of criticism of its treatment of franchisees — is offloading a Gold Coast site once slated for a world-class facility.

Former Retail Food Group managing director Andre Nell pictured at the old Gold Coast Bulletin site. Photo: David Clark

RETAIL Food Group, the owner of the Brumby’s Bakery, Donut King, and Michel’s Patisserie brands, is selling a Molendinar site it had earmarked for its global headquarters.

The Southport-based company bought the 385 Southport-Nerang Rd property, the former site of the Gold Coast Bulletin, in 2016 to centralise its operations and enable room for further growth.

The 24,000sq m site was to house multiple offices, warehousing infrastructure, manufacturing pursuits, loading docks, multiple access points and on-site parking for more than 200 vehicles.

Former RFG managing director Tony Alford said at the time that the acquisition would provide the company with opportunities in terms of future growth and long term stability.

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Food franchisor Retail Food Group’s brands include Brumby’s Bakery.

“We are looking forward to developing the properties into a world-class facility,” he said.

However, since December the company has struggled, and seen its share price plunge in the wake of criticism over poor treatment of financially-stressed franchisees.

RFG shares fell to 43.5c last month, and have fallen as low as 40.2c.

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The company’s reputation has taken a battering following claims from past and present franchise owners that the company prioritised profits for shareholders over the livelihoods of their franchisees.

Richard Hinson, was appointed the new boss of troubled franchise operator Retail Food Group after Andre Nell left.

RFG has now decided not to proceed with its plans for the Southport-Nerang Rd site, and CBRE’s David Corke and Luke Brechin have been appointed to market the property with an expressions-of-interest campaign closing on August 28.

A spokesman for RFG said the company will look for an alternative headquarters as a replacement for the Southport-Nerang Rd site.

“The two sites were purchased to amalgamate the support business, training facilities and some of RFG’s coffee roasting assets, as it was ideally suited for this purpose,” he said.

“However when the decision was made, in the third quarter of last financial year, not to relocate the coffee roasting assets, it rendered the sites no longer fit for RFG’s purpose.

“The site at Molendinar is now surplus to RFG’s requirements. RFG is seeking the appropriate location to accommodate our corporate support office services.”

The company previously sold off a three-site portfolio, that housed its then 500-strong staff, after taking it to market in September last year. The three properties, which included 1-3 Olympic Cct, Southport, and 18 Commercial Drive, Ashmore, realised a combined sale price of $8.18 million.

However, it is understood a deal for 24 Octal St, Yatala, was not finalised and a new buyer has been found.

RFG has leaseback arrangements in place for the Ashmore and Southport properties.