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???
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