Shares in the Retail Food Group, the owner of Gloria Jean’s coffee shops, fell hard in early trade.
At the close, the shares were down 26% to $3.25.
At the weekend, a Fairfax Media investigation revealed hundreds of stores were going to the wall as “a result of a brutal business model”.
However, the company says it has an “optimistic outlook” despite a challenging domestic retail market. Its 2018 guidance is for 6% underlying profit growth.
The company, the franchisor of Brumby’s, Donut King and Gloria Jean’s, has announced a 24-month business review.
Profit in 2017 was $75.7 million on $349.3 million in revenue.
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