The current collapse of Allied Brands Ltd. (ABQ) isn't the first time this company has pulled this scheme on shareholders.
This is in fact the THIRD time ABQ is on this merry-go-round of taking cash from shareholders, "sophisticated investors", and others only for it to end in huge writedowns but promises of future profits.
The organiser of this scam would seem to have a common connection to "restructuring specialist" Korda Mentha. When these techniques are used properly and honestly, companies can restructure and move forward. However the history is that these claims of restructuring are made falsely with cash injections being used for huge management salaries, plush new locations, big cars, and other unearned perks.
Announcements by Allied Brands this week of "big writedowns" and "return to profit" are lies according to a leading forensic accountant, because no profit has ever existed at this company. Even the "dividend" paid to shareholders last year was borrowed money, and window dressing to find new suckers! New money coming to to pay operating costs while telling the investors it's being used to expand the business is a SCAM. SCAM. SCAM. Even SMARTCOMPANY SMELLS A RAT
Review the filed statements and "broker presentations" on the ASX website. Ask yourself why a company would continually lie about international expansions, signed contracts for brand expansion on Cyprus, signed contracts to open 20 shops in Western Australia, etc, etc.
And then compare these statements to reality.
No shops on Cyprus. Never even the hint of who the "contracting party" was, because this was a fact that could be checked. No new shops in WA - in fact a net decline in shops, despite the company claiming "locations have been agreed, leases signed, and shops will be run prior to franchising". Who believes this shit? People like Tom Krulis (Godfrey's) and Barbara O'Brien (Breville) who dumped in money, leant their names and good reputations to this crooked operation, and took later share investor "blood money" as a "salary" from these people. Classic pyramid scheme behaviour.
What kind of people tell these repeated lies? SCAMMERS. And the management of Allied Brands Ltd. that is responsible for these lies has the company now claiming "people sacked" and "lessons learned". Sean Corbin couldn't even tell the truth about the sacking of former CEO Shane Radbone, and was required to issue a more truthful statement after being questioned about his first lies!
A franchisor is a company that lends its good name, business acumen, and management skills to small business so that both can prosper. Brands with once good reputations like Baskin Robbins and Villa Hut and Cookie Man now have franchisees with unsaleable shops, and ABQ can't sell any new except by lying and trickery, a skill they excel. They have no good name, only bad. They have no business acumen. And management only in place to line their own pockets. Without new franchisees no franchisor can stay in business. That's the essential truth for investors and franchisees alike.
A more blatant lying company cannot be found today in Australia.
EVEN TODAY'S ASX-ORDERED STATEMENT DOESN'T MATCH THE COMPANY'S STATEMENTS AS RECENTLY AS 20 MAY. IS SEAN CORBIN NOW JUST THE NEW "LIAR IN CHIEF"?
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