Shopping Centre owner Westfield has yesterday reportedly threatened Allied Brands Ltd. (ABQ) management with a bankruptcy petition, sources inside the company say.
A large number of company-owned but failed Kenny's Cardiology, Baskin Robbins, and Cookieman locations are in Westfield Shopping Centres in Australia and New Zealand. ABQ has previously announced closure of 15 or more Kenny's shops, without yet disclosing what they plan to do with all the failed Baskin and Cookieman locations.
Westfield apparently says that Allied Brands is heavily in arrears on these company-owned locations, and attempts to reach a settlement have been stonewalled by ABQ management.
Estimates of more than $6 million have been made as to the failed shop liabilities and windup costs for these locations. Allied Brands has access to virtually no cash, and apparently Westfield are considering pushing the company into bankruptcy. It's unclear why ABQ management won't even take their calls.
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