ABQ FRANCHISEES REPORT CONTINUING FRAUD BY COMPANY - EVEN WHILE IN "CONTROL" OF ADMINISTRATOR

Now that Allied Brands Ltd. (ABQ) has finally admitted operating while insolvent and appointed an External Administrator, franchisees of all the brands involved are writing to complain that the ASIC administration rules are not being followed. Has the "old boy's club" extended to the appointed liquidators, McGrath Nicol and Vincents Chartered Accountants? Vincents appointment is especially suspicious, as a "home town" firm to the company and ABQ Chairman with at least one director, Peter Biazos a former director with Korda Mentha in Brisbane who's one of the appointed administrators!

Be reminded that Allied Brands chairman Lachlan McIntosh is also a licenced liquidator and director of another oft-criticised firm, Korda Mentha. Oddly, while still listed as liquidator on several high-profile Australian liquidations, McIntosh has been completely removed from the Korda Mentha website. This follows after Korda Mentha blocked access to this and other related blogs on the Korda Mentha internal internet access system, apparently so other employees and staff couldn't find out what kind of damage was being done to employees and franchisees at this McIntosh-run company. Perhaps finally the embarrassment of having a corporate loser as company director started to bite? Call Mark Korda and ask him!

Franchisees report continued billings, invoices, and other items without the ASIC required notices that they are "UNDER ADMINISTRATION" or "RECEIVERS AND MANAGERS APPOINTED". This is just one serious breach of the Insolvency Laws administered by ASIC.

And one franchisee has reported seeing management still driving a "Baskin Robbins" advertising car around the Gold Coast. It's easy to spot - covered with Baskin Robbins logos and rotten tomatoes.

Franchisees are now reporting these violations to ASIC, but don't hold your breath thinking ASIC is the least bit interested now. They haven't been for years!

Franchisees with any question about payments to Allied Brands Ltd. or some subsidiary company should take legal advice and perhaps delay any payments until it is clear they're going to the right pocket. These companies didn't collapse by mismanagement. Most believe serious fraud has been involved. There is no reason to think Administration will be any different.