Taste Holdings losses halt expansion of Domino’s and Starbucks
The group, which had to be refinanced in February to pay off debt, incurred an operating loss and a drop in revenue
The trouble at Taste Holdings has led it to halt the expansion of its Domino’s pizza chain and Starbucks coffee shops. The group, which had to be refinanced by its shareholders in February to the tune of R398m to pay off its debt, incurred an operating loss of R87m and revenue dropped 3% to R469m for the half-year to end-August. It has secured a further R200m in loan financing at an interest rate of 16% from its now majority shareholder, the Sean Riskowitz-backed Riskowitz Value Fund.
The losses and suspension of its store roll-out followed the resignation of its co-founder and CEO, Carlo Gonzaga, in February and CFO Evan Tsatsarolakis in May. Tyrone Moodley, nonexecutive director and former fund manager, has since become CEO. Bruce Layzell was hired as managing executive of Domino’s and Dylan Pienaar was appointed COO and is now its acting CFO. The group said it is pausing the expansion of Domino’s and Starbucks to review the operating models and capital required to deliver a...