Future of Gloria Jeans uncertain

THE future of Gloria Jeans is Warrnambool is uncertain, with Retail Food Group announcing the closure of up to 200 stores.

Shares in the troubled owner of the Gloria Jeans and Donut King chains, Retail Food Group, plunged more than 50 per cent last week.

However, a RFG spokeswoman said no franchisees would be forced to close their store.

“RFG is undertaking a whole of business review, assisted by Deloitte,” she said.

“The review identified between 160 to 200 of our domestic outlets that are unsustainable on a long-term basis and will cease trading before the end of June 2019.”

The spokeswoman said the majority franchisees with stores identified as being unsustainable had already indicated they would not renew their lease.

The spokewoman said rent pressures and declining shopping centre performance were the main issues expressed by franchisees.

“We are working closely with impacted stakeholders,” the spokeswoman said.

“We’re also actively negotiating rents with the landlords as this has been identified by our franchisees are a major stress point.”

A spokeswoman at Gloria Jeans in Warrnambool declined to comment.

The RFG spokewoman said Brumby’s Bakery in Warrnambool would not be impacted by the proposed closures.