One of Australia’s most recognisable bakery chains, Brumby’s Bakery, is officially on the chopping block after contributing to a $14.9 million net loss for parent company Retail Food Group (RFG) in the 2024–25 financial year. The announcement follows a $12.2 million impairment booked against the ageing brand.

Retail Food Group—the franchise giant behind Donut King, Gloria Jean’s, Crust Pizza and Beefy’s Pies—confirmed that a formal divestment process is now underway. RFG Chief Executive Matt Marshall explained they would focus on their other businesses.

“We have announced that we are exploring options for the sale of the Brumby’s Bakery business and are shifting the focus of our company store operations towards Beefy’s Pies and Firehouse Subs to support their rapid expansion,” Matt told 9news.com.au.

While Brumby’s recorded no direct operational failures, the company’s declining financial performance over several years was cited as a key driver behind the decision.

Despite RFG reporting a modest 8.5 per cent rise in total revenue to $143.2 million and a 1.7 per cent lift in underlying earnings to $29.6 million, those gains were overshadowed by restructuring costs totalling $15.7 million and the bakery chain’s downturn.

Founded in Melbourne in 1975 under the name “Old Style Bread Centre,” Brumby’s was rebranded in the 1980s to reflect its Australian roots and quickly grew into a national franchise success.

It became one of the first major bakery chains to adopt a franchising model and was acquired by RFG in 2007.

RFG has made no guarantees that the divestment will result in a sale, noting in a statement to stakeholders that there are “no guarantees it will result in an acceptable offer.”

The move mirrors RFG’s decision earlier this year to shutter Michel’s Patisserie and convert its remaining stores into Donut King or Gloria Jean’s outlets.