Retail Food Group is to raise $47.4 million in debt and equity capital to help fund expansion and strengthen its balance sheet. 

The company says it has already received commitments to $24.9 million via a share placement and secured a $20 million debt facility with Washington H Soul Pattinson and Co. 

RFG executive chairman Peter George said the capital raising and new debt facility will enable the company to “reset and strengthen its balance sheet” allowing it to pursue core business and inorganic growth opportunities.

“The company’s strong 1H23 results demonstrate the resilient nature of the group’s brand system portfolio and validate the strategic decisions implemented throughout the company’s ‘franchisee first’ turnaround journey,” said George. 

“We have carried considerable momentum into the 2H23 and remain focused on delivering solutions to unlock growth and drive enhanced profitability for both our franchise partners and shareholders”.

Queensland-headquartered RFG is Australia’s largest multi-brand retail food franchise manager, parent of Gloria Jean’s, Donut King, Brumby’s Bakery, Michel’s Patisserie, Crust Gourmet Pizza, Pizza Capers, Cafe2U and The Coffee Guy. The company also roasts and supplies high-quality coffee products under the Di Bella Coffee brand.