The parent company of Crust and Gloria Jean's has gone into the red

Tianjin opening of Gloria Jeans. Supplied

Shares in the Retail Food Group fell hard after the operator of Brumby’s, Donut King, Crust Gourmet Pizzas, Michel’s Patisserie and Gloria Jean’s reported a full year loss.

They dropped by as much as 10% soon after the loss announcement. A short time ago, they were down 4% to $0.60.

The company posted a loss of $306.69 million after non-cash impairments and write-downs of $402.9 million.

Underlying profit was $33.3 million, down 56.1%, in line with guidance.

The company has been under pressure since a Fairfax Media investigation revealed hundreds of stores were going to the wall as “a result of a brutal business model”. The company says it has no evidence of franchisees underpaying staff.

Retail Food Group has decided to close between 160 and 200 Australian outlets by the end of the 2019 financial year due to high rents and declining shopping centre performance.

NOW WATCH: Money & Markets videos

Business Insider Emails & Alerts

Site highlights each day to your inbox.

Follow Business Insider Australia on Facebook, Twitter, LinkedIn, and Instagram.