Iconic Brumby’s Bakery on the Market Amid Major Downturn
Australia-based Brumby’s Bakery, a well-loved element of the local communities since 1975, is now facing an unclear future. The beloved bakery chain, known for its freshly baked bread and pastries, has been put up for sale by its parent company, Retail Food Group (RFG), following a significant financial downturn. In the 2024–2025 fiscal year, RFG reported a net loss of $14.9 million, a stark contrast to the $5.8 million profit in the previous year. This loss was primarily attributed to a $12.2 million impairment on the aging Brumby’s brand and $15.7 million in restructuring costs.
A Storied History
Originally established in 1975 in the Eastern Suburbs of Melbourne, Brumby rapidly expanded across Australia and New Zealand and became one of the largest and most popular bakery food franchises in this country. The brand prided itself on being a specialty bread retailer, honoring the heritage of artisan bakers while introducing a fresh and creative approach to baking.
Financial Challenges and Strategic Shift
Despite an 8.5% increase in revenue to $143.2 million, RFG’s net loss was exacerbated by the $12.2 million impairment on the Brumby’s brand and $15.7 million in restructuring costs. In response, RFG is exploring options for the sale of Brumby’s Bakery and focusing on expanding other brands like Firehouse Subs and Beefy’s Pies.
Community Impact
Brumby’s Bakery has been more than just a business; it has been a part of the community fabric. Its commitment to quality and tradition resonated with customers, fostering a loyal following. The potential sale raises questions about the future of these community connections and the brand’s legacy.
Conclusion
The sale of Brumby’s Bakery marks a significant turning point for the brand and the Australian bakery industry. As RFG shifts its focus to other growth opportunities, the future of Brumby’s remains uncertain. The coming months will be crucial in determining whether the brand can find new ownership that will honor its legacy and continue to serve the communities that have supported it for decades.
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Exclusive: Brumby’s Bakery to be sold off as parent company Retail Food Group loses $14.9m.
Brumby’s started in 1975 in Ashburton, Victoria, originally named “Old Style Bread Centre,” and later rebranded, growing into a well-known bakery chain across Australia.
No, Brumby’s and Bakers’ Delight are separate bakery chains. Both were founded by Roger Gillespie in Ashburton, Victoria, but operate independently.
Disclaimer:
This content is for informational purposes only and is not financial advice. Always conduct your research.