The franchising giant behind Gloria Jeans, Donut King, Brumby’s Bakery, and other well-known businesses is under scrutiny after it valued its brands at $52 million despite all their financial losses.
Retail Food Group’s goodwill is in the black on their ASX listed balance sheet with their net assets currently sitting at $19.5 million, a major difference to the $52 million they valued their brands, which could put its net assets in a negative position.
Forensic accountant and director of consultants Helm Advisory, Ross Mottershead, says RFG’s level of goodwill has to reflect their decline in profits and increase balance sheet risk.