Join our daily newsletter At The Bell to receive exclusive market insights
- Retail Food Group (RFG) prepares for another class action against the business from franchisee Michel’s Patisserie
- The proceedings are related to historical operations and conduct under former RFG leadership
- Specifically, the lawsuit is from the switch to frozen goods instead of fresh goods in 2015
- RFG says it is currently assessing the claim but it denies all the allegations and will be defending the case
- On the market, RFG is down 3.53 per cent and is trading at 8.2 cents per share at 1:03 pm AEDT
Retail Food Group (RFG) has told its investors to prepare for another class action lawsuit against the business from franchisee Michel’s Patisserie.
The food franchisor said that a former Michel’s franchisee had initiated proceedings against the company in Federal Court.
The proceedings are related to historical operations and conduct under former RFG leadership.
Specifically, the lawsuit is from the switch to frozen goods instead of fresh goods in 2015.
Michel’s said it saw consumer backlash from the change and it ruined their reputations, making an impact on the quality and pricing of its products.
RFG said it was currently assessing the claim but it denied all the allegations and would be defending the case.
“The representative applicant is seeking damages, declarations, interest and costs on behalf of the representative group,” the company said.
“It is not currently possible for RFG to quantify the financial implications of the
outcomes being sought against it in the proceedings.”
On the market, RFG was down 3.53 per cent and is trading at 8.2 cents per share at 1:03 pm AEDT.
-1200x645-380x200.jpg)
