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Small restaurant franchiser Gold Brands International, which owns the Chesanyama brand, is now so starved of capital that it is mulling the sale of a subsidiary to secure much-needed cash flows. Belated financial results released on Monday showed the company’s current assets of R18.5m not nearly covering current liabilities of R47m. Gold Brand’s liquidity squeeze is markedly worse than last financial year when current assets totalled R33m compared with current liabilities of R51m. This has prompted its auditors to again raise a red flag over the company’s “going concern” status, despite Gold Brands managing to markedly cut its bottom line losses to R16m (previously R48.5m) off dramatically reduced store base that gene-rated turnover of R40m (previously more than R140m) in the year to end February.

Consumer appetites have lately dwindled in a competitive fast food and restaurant sector, where even large listed players such as Spur Corporation and Famous Brands have struggled to...

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