FoodBuzz Pvt. Ltd., the local franchisee of Singapore based boutique bakery chain, has its classification changed from a ‘subsidiary’ to ‘non-current asset held for sale’, the interim financial accounts of the R I L Property PLC (RIL) said.
Earlier in March, RIL announced its decision to fully dispose the 100 percent stake held in FoodBuzz.
RIL stated that the carrying value of the investment would be recovered principally through a sale transaction rather than through continuing use.
The negotiation process with a potential investor who intends to acquire 100 percent of the shares of FoodBuzz has already been kicked off by RIL.
The temporary suspension of FoodBuzz’ operations as announced in March has not been implemented as yet.
In the food processing and other related services segment, RIL saw its revenue contracting by about 58 percent during the financial year ended March 31, 2021, to Rs.169.9 million from a year ago.
The food segment posted a net loss of Rs.189.5 million for the year, expanding its losses by 183 percent from a year ago.