Donut King’s embattled parent company Retail Food Group has been suspended from trade on the share market for failing to lodge its half-year financial report.
RFG, which also owns Gloria Jean’s, Crust Pizza and Michel’s Patisserie, delayed the release of its results on Wednesday as it it said it was waiting for its auditor to sign off on the report.
The company said its results may not be ready for release until Friday.
The Australian Securities Exchange on Thursday listed RFG as one of five companies to be suspended from trade for failing to lodge their half-year report and accounts.
The company’s shares last traded at $2.04, and have more than halved in value since the company was in early December accused of mistreating its franchisees.
RFG has denied all allegations, including claims it has been running franchisees into the ground with exorbitant supply and marketing costs.
But the cafe, bakery and pizza franchisor has since issued two profit warnings.
The latest profit downgrade, issued in January, forecast net profit for the six months to December 31 to be lower than the company’s previous guidance of $22 million.
This is significantly lower than the $33.5 million it made in the same period a year ago.
RFG is also facing possible class actions with legal firm Bannister Law having announced in January that it is looking into action against the company on behalf of shareholders and also franchisees.