Shares in Retail Food Group have continued to recover from their recent abysmal run, rising nearly 10 per cent after the embattled franchisor extended the life of $150 million in debt facilities to 2020.

The move eased uncertainty over the company’s finances after its shares dived nearly 50 per cent following a profit warning and allegations it is driving franchisees to the wall by charging them exorbitant fees.

Retail Food Group, which owns brands including Gloria Jean’s and Donut King, on Wednesday said its lenders had agreed to extend a $100 million facility to January 2020 and a $50 million facility to December 2020.

Both facilities were previously set to mature in December 2018.

In addition, the company has reduced existing five-year debt facilities maturing in December 2020 by $25 million, taking its total senior debt facilities to $319 million.

The company’s shares – which rose 32.3 and 7.0 per cent in the last two trading sessions before Christmas – climbed on the news, closing up 9.1 per cent at $2.51.

The stock had tumbled to a more than eight-year low after media reports accused the company of oppressive business practices, including exorbitant fees and a lack of support for its franchisees.

Retail Food Group denied the reports, but warned that its half-year profit was set to fall by more than a third, partly blaming the negative publicity and a tough retail environment for the sales decline.