BreadTalk closure put off due to potential investor interest

R I L Property PLC will not suspend BreadTalk operations as announced, as the company is now in negotiations with a potential investor, who intends to acquire franchise rights.

“R I L is in the process of negotiating with a potential investor who intends to acquire 100 percent shares of FoodBuzz (Private) Limited,” R I L Property said in a stock exchange filing.

“In light of this we wish to keep the Exchange informed that the temporary suspension of operations as announced on March 16, 2021 has not been implemented,” it added.

R I L Property in a previous disclosure informed the market that the director board of its wholly owned subsidiary FoodBuzz had decided to close all BreadTalk outlets from March 20, 2021 until further notice.

It stated that the decision was taken due to adverse market conditions stemming from the Easter attacks as well as the ongoing pandemic.

BreadTalk, the Singapore-based franchise, was first introduced to Sri Lanka by FoodBuzz in 2012. There are 10 BreadTalk outlets in Sri Lanka as of now. 

As per the interim financial accounts filed with the Colombo Stock Exchange, BreadTalks’ revenue halved to Rs.126.4 million during the nine-month period ended December 31, 2020 from Rs.317.3 million a year ago, and the net loss for the period widened to Rs.86.2 million from Rs.47.8 million.