ALLIED BRANDS BLOG ACCURATE ON ABQ COLLAPSE NINE MONTHS AGO!

WE WARNED ON 2 MARCH 2010 THAT ALLIED BRANDS WAS BLEEDING CASH ON OVER-MANAGEMENT SIGNED OFF BY CHAIRMAN LACHLAN MCINTOSH

WE ADVISED ON 9 APRIL 2010 THAT MD PETER GRAHAM HAD ALREADY BEEN STOOD DOWN AND NO LONGER IN CHARGE OF ANYTHING

WE WARNED ON 17 FEBRUARY 2010 THAT THE COMPANY WAS CARRYING HUGE NUMBERS OF LOSS-MAKING SHOPS with so far only the loss-making Kenny's Cardiology shops being closed

WE WARNED ON 20 JANUARY 2010 THAT THE COMPANY'S USE OF SPRINGTREE VC MONEY WAS A LAST DITCH EFFORT TO SAVE THE COMPANY despite massive lies that continue to be told by the company

In fact, EVERYTHING written here has proven to be true, thanks to insiders reporting the REAL TRUTH about Allied Brands Ltd.

Why hasn't ASX and ASIC required ABQ to adhere to "Continuous Disclosure" laws, and adhere to basic standards of TRUTH TELLING to share holders?

We now know why 9 week director Jury Wowk left - as reported "ABQ has quite a fucking mess here".

INSIDERS REPORT LATE PAYROLL, COMPANY OUT OF CASH?, POSSIBLE ACCOUNTANCY RESIGNATION THREAT

Insiders at Allied Brands Ltd. (ABQ) are reporting late payroll and angry vendors with delayed payments becoming the order of the day.

New CEO Sean Corbin has been told by the board to "figure out how to hold it together" until the board can figure out where $3M in needed cash will come from. Corbin is said to be under ASX investigation for his continued misleading statements - telling the market former CEO Shane Radbone had been "stood down" and then, when challenged with the facts, admitting that he had been sacked. Likely the same situation with former MD Peter Graham. Meanwhile "the mates" continue to dump their shares driving the price now below 3 cents.

Also under investigation by ASIC are the misleading statements from the Baskin Robbins management team, including the large number of loss-making company shops still being marketed although shown to be failures. Likewise there are indications that some actions are finally going to be taken in defence of the Koreans who were sold dud shops and visas at New Farm Brisbane as well as the train station in Sydney. Perhaps criminal indictments?

The only brand with no shops needing closure are said to be freestanding Cookie Man shops. GM Elligett has however refused to get involved in more capital raising, seeing it as futile. Attempts to resell Kenny's Cardiology and Awesome Water back to their original sellers has seen these offers rejected. Both are said to be waiting for the inevitable collapse.

MORE MISLEADING ANNOUNCEMENTS FROM SEAN CORBIN AND ALLIED BRANDS (ABQ)

Allied Brands Ltd. (ABQ) made the ATTACHED ANNOUNCEMENT today - it is referenced to Sean Corbin, acting CEO but smells more like the output of a team of sleazy lawyers.

As reported here previously, founder of Baskin Robbins Australia Peter Graham has been removed as Managing Director - which is pretty irrelevant, as he hasn't been "managing" anything for almost two years according to insiders.

Insiders also report that there are other management sackings that the company hasn't yet reported despite ASX and ASIC requirements for "continuous disclosure". No word whether this includes the serial harasser who's been the cause of several employees leaving previously.

The most misleading of statements is the information regarding the funds previously being advanced by Springtree, a US-based investment fund which have been repaid by way of convertible note conversions, an odd situation that's raised eyebrows among the investment community.

Insiders report that Springtree solicitors contacted ABQ after the stock halt, and rattled a "lawsuit" sword due to what they have characterised as fraudulent information provided to them. The company has scraped up money to pay them back apparently to avoid Springtree pushing the company into liquidation.

Note the carefully crafted but totally misleading information in Allied's statement in the matter. After trumpeting the issuance of this high-cost debt just a few months ago, the company is now following one furphy after another. You've got to wonder what business school teaches this kind of obfuscation.

Shares have only .03 to go to ZERO.

MISSING PROMISED ANNOUNCEMENTS ALLOW MATES TO DUMP HUGE BLOCKS OF ABQ SHARES - LIES CONTINUE

In the trading halt announcement of 11th June 2010, CEO Sean Corbin wrote:

"Further announcements on management changes and the completion of the strategic review of the group will be announced in the coming week."

They have not. No explanation about where the money is coming from to shutdown 15 Kenny's stores. No explanation why the loss-making company-owned Baskin Robbins shops (most taken back from failed franchisees) aren't being closed. No explanation about the quantity of unsellable plasma TV's being warehoused.

Instead the week has been used by the mates to sell-off huge blocks of shares, with massive daily volumes as those with real information move to get out.

FRANZ MADLENER WRITES TO WHINGE ABOUT BEING TAINTED ALONG WITH OTHER ABQ MANAGEMENT______*PREDATOR WARNING UPDATED*

Franz Madlener, CEO of Allied Brands-owned Villa & Hut, has written a complaint about getting the same "bucketing" as the others at Allied Brands. The three V&H shops near here have franchisees that seem genuinely happy with Mr. Madlener, and he apparently didn't take the warnings we gave him seriously when he sold out to Allied Brands. Something he clearly now regrets, as in some ways he's been victimised by this corrupt company of flim-flam artists as well.

As part of the ABQ management team however he cannot but help to have noticed differences in his operation with how Baskin Robbins franchisees have been treated however.

Mr. Madlener, did you ever object when Baskin Robbins management:

• Sold dud locations to Koreans, Chinese, and Indians along with Australian residency visas?

• Raised key product pricing despite assuring your franchisees you had currency hedging in place?

• Spent months fucking a key employee and keeping them on in employment when they were clearly incompetent?

• ABQ management were giving themselves no-interest loans and other perks while franchisees suffered?

TODAY, PUBLIC COMPANY DAVID JONES SACKED THE CEO FOR "IMPROPER ACTIONS" WITH A FEMALE MARKETING EMPLOYEE. THERE IS NO INDICATION OF SEXUAL ACTIVITY - BUT THIS IS HOW ETHICAL COMPANIES DEAL WITH SEXUAL HARASSMENT IN THE WORKPLACE. WHAT HAS ALLIED BRANDS DONE ABOUT THEIR IN-HOUSE PREDATOR???.

Mr. Madlener, did you:

• Ever ask why ABQ was forced to take back Baskin Robbins shops that had failed, and continued to try and sell them to new suckers?

• Ever wonder why Baskin Robbins franchisees were continually short of ice cream, dry goods, and other essential supplies?

• Wonder why ABQ feels the need to secretly access video cameras in Baskin Robbins shops to spy on their franchisees?

• Arrange kickbacks from suppliers directly to your company without your franchisees knowledge?

You've been around Allied Brands for some time, Mr. Madlener. Do you expect anyone to believe you had no idea these things have been going on, and somehow your reputation wouldn't be affected?

Madlener squeals: "I have stayed focussed on continuing to build a brand that has strong ethics and values around ‘fair trade’ ‘eco-retailing’ and ‘sustainability’.." Did you not notice that the management philosophy at Baskin Robbins, by far the biggest piece of Allied Brands, is focussed on "no ethics, unfair trade, screw the franchisee, cheat the foreigner, and put as much in our pockets as possible"?? Sadly you now risk ending up being just one of those crims running Allied Brands because no one will remember the good you think you've done.

We applaud you Mr. Madlener for trying to stay true to your principles when acting as senior management in such a corrupt company. But when you lay down with pigs, you can't expect to not be labeled a pig yourself. Your continued association with this obviously corrupt enterprise provides you with no ethical place to hide. If you don't insist the corruption be removed from all aspects of company operation, you'll have undone any good works you THINK you've done. And you'll have no problem when the rest of us judge you accordingly.

SYDNEY MORNING HERALD CONFIRMS ABQ FAILURES, REFERENCES *THIS BLOG* IN THEIR LEAD! WALL STREET JOURNAL AND OTHERS ALSO MOCK ALLIED BRANDS

As noted IN THIS BLOG weeks ago, the feeble attempt by Allied Brands Ltd. (ABQ) to mislead investors and the market was so poorly edited, the unwitting typo about "Key management not being needed" has proven prophetic. The Sydney Morning Herald today (headline shown above) references this poorly fact-checked Powerpoint, and notes the irony in their story mocking Allied Brands directors. For franchisees of the various failed brands this was just one more in a long line of management incompetence.

The SMH has also exposed ABQ operations and management as the sad, sick joke they have become and notes the absurdity of still claiming they're making a profit while at the same time not accounting for the jettisoned operations.

AND, in a second mention another SMH story notes the "word games" played by Allied Brands in their announcement Friday that CEO Radbone had "stood down", a bullshit announcement that was changed yesterday to "terminated".

This second story also notes the "stark contrast" between today and what Radbone was telling the market "only three months ago". LIES LIES AND MORE LIES, that's the history of Allied Brands! WE TOLD YOU SO HERE FIRST!

The SMH also notes the shadowy lack of interest shown by Managing Director Peter Graham. We all know what's really going on. . . .we explained it to you last Monday!

Other references to the lies told by Allied Brands in the Wall Street Journal/Australian - "No doubt Allied has an awesome plan to pull itself from its awesome funk, but we're more comfortable avoiding the stock until we see the proof."

As all these stories hit the media today, you can hear the gales of laughter from Retail Food Group, Wendy's, and all the other competitors who regularly monitor the collapsing Allied Brands here.

And finally, among other criticisms the Australian ponders what we asked earlier- when are the Radbone's going to pay back the "sweetheart" loan for ABQ shares?

One has to wonder how the straight-arrow Boston management of Baskin Robbins is enjoying being dragged thru the mud with this corrupt company entrusted with the good name of their brand. From the sale of visas with dud shops, to the continual inability to provide a solid financial footing for their franchisees, growth for Dunkin' Brands has been continually squandered by their association with Allied Brands. Dunkin' Brands has been planning an IPO of the company, delayed only by the global financial crisis. A major embarrassment in their Australian operations does little to assist them. Time for them to invoke terms of THEIR contract and get the brand in competent hands.

CRISIS MEETINGS - ALLIED BRANDS (ABQ) STYLE

Even on the Queen's Birthday holiday, attempts are being made by some directors to salvage some of what is left of Allied Brands (ABQ). Meetings are being held all day between directors and key management. All the directors and key management excepting pseudo Managing Director Peter Graham, who's already thrown in the towel. Once 100% owners of Baskin Robbins Australia, their 17 years of screwing franchisees, Baskin Robbins America, and continual bad business decisions have resulted in huge personal losses to his family, his brother David's family, and other family members.

Available only via telephone, Graham is reported to have shouted at one director "you've fucked it all up mate, it's all collapsed in a heap, end of story".

Then Graham, also known as the "puppet managing director" since the company was taken over by Korda Mentha director Lachlan McIntosh, went into his media room and fired up his first movie of the day, "The Last Emperor". A movie about the puppet leader of China, before it collapsed in a heap.

Bloody appropriate.

FIRST KNOWN CASUALTY - CEO SHANE RADBONE - BASKIN ROBBINS BLOG PROVEN ONLY REPUTABLE SOURCE OF ALLIED BRANDS INFORMATION!

In a terse statement, CEO Shane Radbone has been confirmed as terminated by Allied Brands Ltd. Sack city. Canned. Junked. Axed. Good Riddance.

It's also been confirmed that statements from a few weeks ago about "huge profits" and "strongly performing businesses" are LIES, LIES LIES.

New interim CEO Sean Corbin has a suspicious past career as well (discussed elsewhere on this blog). He's lowered profit expectations to $5 million, but this includes neither the restructure costs of Kenny's Cardiology - closing 15 shops can easily cost $300k - $500k per shop with leasing and staff redundancy liabilities. And why does the company have so many unsold Kenny's shops? Because the brand is a failure, none of the franchisees is making a return on investment and will likely ditch the brand along with Allied closing their shops.

Then the massive costs associated with the "Awesomely Stupid" idea to sell overpriced plasma TV's in competition with major retailers. The company has refused to confirm how many now-obsolete cheap Chinese made plasma TV's they have. They're essentially worthless now.

And if you believe this company's continued lies about the performance of Cookieman and Baskin Robbins, ask any franchisee about Allied and get the real truth direct from the source. Investigations into Allied's sale of franchises and visas to Koreans, Chinese, Indians, and others continue by federal government. Franchisees are also wondering if the manager known to be "involved" with current and ex-employees is going to be one of the casualties. Or is immorality an asset at Allied Brands?

And since Allied Brands is also now not in conformance with its lenders covenants, and may be trading insolvent, anyone who continues to think this company can get out of this hole deserves what they get.

Radbone perhaps will be an ice cream scooper now, here he is warming up. Hard to continue as a "motivational speaker" when your business career is plagued with such failures. Radbone was just heavily (self) promoted in Broken Hill where he was speaking on his "business experiences". Given his "business experience" is littered with massive failures including Quiznos and now driving Allied Brands over a cliff, you've got to wonder how dangerous this guy's "business advice" has been to the Aussie business community! One ABQ director has said privately that Radbone's spent more time on "self-promotion" and "motivational speaking" than on his job!

Radbone was given a huge "loan" by ABQ to purchase 5 Million shares in this now almost-defunct operation for himself as well as his wife Victoria Elise Radbone's Superannuation Fund. When are Shane and Victoria going to pay this money back now???

YOU'VE DONE YOUR DOUGH

SAY GOODBYE, ALLIED BRANDS!

READ HERE

Keep in mind whatever this company says is just one set of lies covering up the last set of lies. Ever wonder why CEO Shane Radbone doesn't tout his bringing the Quiznos brand to Australia? Read the ACCC undertaking given by the failed Quiznos Australia, helmed by now ABQ CEO Radbone, and you'll understand the history of world class lying that Allied Brands has at its core!

MANAGEMENT SHAKEUP IMMINENT AS ABQ OPERATIONS COLLAPSE

INSIDE SOURCES say that Allied Brands Ltd. (ABQ) board of directors is discussing a major management housecleaning as word of financial irregularities is now coming from the new "combined" ABQ finance department in Brisbane.

Sources say it would have been implemented sooner except no viable candidates for the positions are interested in working for such a known-corrupt entity.

ADDITIONAL INFO:

First casualty looks to be Bret Amis, general manager of Baskin Robbins Australia. Insiders say he's trying to get back his previous position at Collins Foods, franchisor of KFC and Sizzler. We understand Collins is in fact investigating Baskin Robbins and Allied Brands to determine what responsibility Amis might have for the ABQ collapse.