Australian Bakery Chain Brumby’s to be Sold After Significant Financial Losses
Retail Food Group (RFG), the parent company of Brumby’s Bakery, has announced plans to sell the iconic Australian bakery chain after it reported a significant financial loss of $12.2 million last year.
The company revealed its 2024-25 financial results, which showed a net loss of $14.9 million, a significant decline from the previous year’s net profit of $5.8 million.
The decision to sell Brumby’s Bakery is part of RFG’s efforts to refocus on its other brands, including Beefy’s Pies and Firehouse Subs.
Background of Brumby’s Bakery
Brumby’s Bakery, which was founded in 1975 in Melbourne, has hundreds of franchises across Australia and New Zealand.
The brand was acquired by RFG in 2007 and has since become a staple in the Australian food industry.
RFG chief executive Matt Marshall stated that the company is exploring options for the sale of Brumby’s Bakery, citing the long-term decline of the brand as a major factor in the decision.
Marshall expressed confidence in the company’s ability to expand its other brands, including the newly launched US sandwich brand Firehouse Subs, which is expected to exceed 165 stores in the long term.
RFG’s Diversified Portfolio
RFG is Australia’s largest multi-brand retail food and beverage franchise owner, with a portfolio that includes Gloria Jeans, Donut King, Beefy’s Pies, and Crust Gourmet Pizza.
The company recently announced the closure of its Michel’s Patisserie brand, with plans to convert remaining cafes into Gloria Jean’s or Donut King outlets.
The sale of Brumby’s Bakery is expected to be a significant development in the Australian food industry, with the iconic brand potentially changing hands in the coming months.