A leading financial share market analyst has confirmed key items buried in the summary annual report for Allied Brands Ltd. (ABQ) show continued evidence that franchisees are failing in large numbers. This is especially true for the Baskin Robbins and Cookie Man brands, where years of franchisee abuse has made these shops virtually impossible to sell.Note 3 in the Report has $559,000 for "provision for doubtful debts". This is primarily franchisees who are being "propped up" by Allied Brands so they can cover up the reality of these shops. Shop owners are being pressured into signing deeds to secure these loans - loans that Allied Brands knows in their reporting that will never be paid!
Insiders also confirm that cash reserves are dropping dramatically.
More store closings have occurred recently, and more are coming. The once strong brand presence in Perth by Baskin Robbins has gone pear shaped - from 19 shops to less than 10, with others for sale (but unsellable).
Likewise the Villa & Hut shops were clearly not making money for founder Franz Madlener, and because little due diligence was done by Allied Brands the full impact of the cash-draining operations are now being realised. Madlener has been cut out completely of any real management responsibility as he is seen as a weak and ineffectual manager.
QUESTION: IS HACKETTS GOING TO PUT THEIR REPUTATION AND BUSINESS ON THE LINE BY SIGNING-OFF ON THIS KIND OF REPORT?
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