Just need to correct some misinformation here for holders. Th
1)if the company goes into administration/liquidation the assets will be resold in a fire sale. This means franchisees will still operate under a new Franchisor (owner) but the same brand. It will have no material impact on franchisee. Some will say it it better for franchisees should this occur.
2) the banks will continue to give relief until closures outweigh benefits of a sale of assets and reduction of operating costs currently underway. This is dictated by market conditions as outlined by Rfg as risks ie rents, leases etc
3) if the banks were at all concerned about franchisees they would have not lent to Rfg initially and/or called in the loan when it originally fell due. They certainly knew the majority of earnings came from supply chain margin to franchisees as should have all holders. Remember the churning was the tip of the iceberg the root of the problem was always the gross margin on product cost sold to franchisees who then needed to resell to consumers with the high rents etc and try make a profit
RFG Price at posting:
21.5¢ Sentiment: Sell Disclosure: Not Held
