Donut King Owner Plunges on Media Report Franchisees Mistreated
- Retail Food Group shares slump by record 27% in Sydney trading
- Company rejects media report, says it’s reviewing its business
A selection of donuts at a Donut King store.
Photographer: Phelan M. Ebenhack via APThis article is for subscribers only.
Donut King owner Retail Food Group Ltd. slumped by the most on record Monday amid reports the company squeezed franchisees with high fees and offered limited management support.
Shares in the company fell as much as 27 percent in Sydney trading, the steepest drop since listing in 2006, and wiping as much as A$217 million ($163 million) off its market value. The stock was 24 percent lower at A$3.36 at 3:24 p.m., the lowest since June 2013.