Brumby’s Bakery Faces Sale After Years of Decline

Brumby’s Bakery Faces Sale After Years of Decline

Brumby’s Bakery Faces Sale After Years of Decline

Brumby’s Bakery, once a familiar household name for fresh bread and pastries, is now being prepared for sale after suffering heavy financial losses. The announcement came from its parent company, Retail Food Group, which revealed that Brumby’s had been dragging down its overall performance for years.

The numbers paint a tough picture. Retail Food Group reported a $14.9 million loss for the financial year ending in 2025. That result stood in sharp contrast to the $5.8 million net profit posted the year before. A large portion of the latest loss was linked directly to Brumby’s ongoing struggles, with the brand itself costing the company $12.2 million in the past year. Because of this, a formal divestment process has been started, though the company admitted there is no guarantee that a buyer will come forward with an acceptable offer.

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For many Australians, Brumby’s Bakery has a place in history. It first opened its doors in Melbourne’s eastern suburbs back in 1975. Within years, its reputation for fresh, affordable baked goods allowed it to expand quickly across Australia and even into New Zealand. Families would often stop by their local Brumby’s for a weekend loaf or a treat, and the stores became part of many suburban communities.

In 2007, Brumby’s was acquired by Retail Food Group, a company that also looks after several other well-known brands such as Donut King, Gloria Jean’s Coffees, and Crust Gourmet Pizza. While some of those businesses continue to show growth potential, Brumby’s has been steadily declining. Changes in consumer habits, increased competition, and the rise of independent artisanal bakeries may have all contributed to the brand losing its former shine.

Now, the focus for Retail Food Group is shifting. By moving to sell off Brumby’s, the company hopes to concentrate resources on brands with stronger long-term prospects. Still, the announcement marks the end of an era for a bakery chain that once stood proudly as a staple of local communities.

For those who grew up with Brumby’s, the news may feel like more than just a financial story. It is also a reminder of how quickly the retail and food industries can change. A bakery that was founded half a century ago and expanded nationwide is now on the verge of being sold off, with its future uncertain. Whether Brumby’s finds a new owner who can revive it or fades further into history remains to be seen. But one thing is clear: the decline of Brumby’s shows how even well-loved names in food can struggle to survive in today’s competitive market.

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