Retail Food Group shares plunge as Tony Alford races for exits
Tony Alford and his crew race for the exits at Retail Food Group
By Colin Kruger
30 May 2018 — 12:15am
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Retail Food Group shares staged a limp revival on Tuesday after the scandal-stained fast food franchisor announced company veteran Andre Nell was stepping down as its managing director with immediate effect.
The announcement came less than a week after RFG’s controversial former chief executive and major shareholder, Tony Alford, loosened his grip with a share sale that dropped his stake below 5 per cent. He owned 12.7 per cent of RFG as recently as September.
Former RFG CEO Tony Alford (left).
Photo: Instagram
Nell worked closely with Alford and was his anointed successor, so it is hard to see the timing of the two announcements as pure coincidence.
Alford’s share sale provides a damning indictment of RFG’s future by the man who had built the fast food empire from humble beginnings.
The ceasing to be a substantial shareholder notice lodged with the ASX last week reported that Alford dumped 7.55 million shares - more than 4 per cent of RFG’s shares - at “market prices”.
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The stock hit a record low of 74.5¢ during this period. At those prices, Alford's proceeds would barely cover the fuel bills on the exotic cars he races, like his Lotus Exige.
Illustration: John Shakespeare
When Alford lodged his previous substantial shareholder notice in September, he had been dumping stock for as much as $5.25.
It is a pity, because it sounds like the new chief executive, Richard Hinson, is doing all the right things to try to repair RFG's trashed reputation and relationship with franchisees.
“Our core business is fundamentally sound,” said Hinson in the official press release - which translates as “the model works if we just stop ripping off the franchises”.
“Richard is gaining the confidence of the franchisees and has restored some momentum to the business,” RFG chairman Colin Archer said.
This is the same guy who was lauding Alford’s achievements as CEO when he stepped down in 2016.
Luckily for Archer, he announced plans to step down as chairman well before Fairfax Media’s
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