ALLIED CONFIRMS FINANCIAL DEFAULTS, NOW WANTS MEDIATION IT WON'T PROVIDE ANYONE ELSE!!!

Allied Brands Ltd (ABQ) issued a statement after close of market today that has brought peals of laughter and derision from Baskin Robbins franchisees in Australia.

The STATEMENT confirms that money raised this week in desperation by the sale of more shares was raised to pay Dunkin Brands money that it agrees is in default to Dunkin by ABQ. We wonder if the ASIC and the ASX are reading this statement - it confirms that Allied Brands is financially IN DEFAULT, and failure to pay debts as they come due is TRADING WHILE INSOLVENT.

TRADING WHILE INSOLVENT! CONFIRMED BY ALLIED BRANDS!

The statement then goes on to claim that ABQ is going to lodge a complaint under the provisions of the Australian Franchise Code for mediation!

This despite Allied's history of stonewalling complaints filed under the code by Australian franchisees. Baskin Robbins Australia has a long history of failing to respond to mediation notices and failing to even appear at scheduled mediations.

Since the ACCC has no "enforcement" provisions for "Failure to Mediate", Allied's history as a rogue franchisor in this area is clear.

Now Allied Brands insists that Dunkin Brands follow the code that they themselves have used to abuse the Baskin Robbins franchisees!

We all can't stop laughing!

MORE DODGY FINANCIAL SHENANIGANS TODAY FROM ALLIED BRANDS (ABQ)

Allied Brands (ABQ) so-called acting CEO Sean Corbin has filed an ASX document today showing that the company is engaged in the dodgy accountant equivalent of "searching the sofa for coins". With weeks gone by, this is pathetic.

ASX NOTICE

No word on when Baskin Robbins "31 Flavours" franchisees will ever see 31 again (most reporting 12-15 currently).

And no word when, if ever, ex-CEO Shane Radbone and his glamour spouse Victoria Elise Radbone are going to pay back their sweetheart $750,000 loan - now seriously in default.

The amount raised in this action today won't even come close to paying costs associated with all the failed Kenny's, Cookieman, and Baskin Robins locations here an in New Zealand. Maybe it's for one big last party?

The next step (they do it all the time) is for one of the mates to buy some shares to push up the price in desperation. Given that 95% of the value and all of the cash is gone, what's the point?

SHANE RADBONE ATTEMPTS TO REPAIR SHATTERED REPUTATION WITH LITTLE SUCCESS

Shane Radbone, the sacked ex-CEO of Allied Brands Ltd (ABQ) has discovered that unemployment has given him the time to engage in a new career - attempting to fix his shattered reputation. His performance was so abysmal that the company issued two statements on his departure, the second ensuring that everyone was aware he didn't resign, but was ejected.

While Radbone was CEO at Allied Brands, the company has seen the shares collapse, all of the associated businesses showing massive losses, and employees filing lawsuits against the company as well as franchisees filing complaints over ABQ's "unconscionable conduct". Radbone oversaw the company while all these frightening actions were occurring. He's an embarrassment to all, including his Scotch College schoolmates.

Shane Radbone and his wife Victoria Elise Radbone also borrowed $750,000.00 from the company in what most regard as a "sweetheart" loan. With the shares now worth virtually nothing and the company having no choice but to sack Radbone, he now has continued to fail and pay the company back this large sum of money. With the company already deep into a bank overdraft (almost $650,000 at the end of the financial year), the company desperately needs funds to finance the closure of all the dud locations Radbone approved.

WHERE'S THE MONEY, SHANE & VICTORIA?

Today, a "mate's article" appeared in the Fairfax papers, including the Sydney Morning Herald. In it, Radbone claims he's "reengaging with his fan base on a new blog". A blog that has two entries in it, one from his "speaker's agent" Greg Hobby, and the second from his co-debtor wife Victoria Elise. Since several companies including Allied Brands experienced the "black hand" of Radbone on their operations, "motivational speaker" would seem to be an illogical choice. He points to his marginal performance ratings as a speaker - ratings that all occurred before he drove Allied Brands into a ditch. Hard to motivate another company when everyone knows under your watch a manager engaged in sexual harassment of an employee and finally drove the victim out of the company.

No amount of manipulated press can fix Radbone's now shit reputation. He can't skate thru on press releases and a mediocre sporting career anymore. Business judges by performance, and Shane Radbone is the bottom of the barrel.

One just has to read Shane Radbone's statements to the ASX and sharemarket and then compare them to reality. What kind of motivational speaker has so many lies with his name on them?

WHERE'S THE MONEY, SHANE & VICTORIA?

INSIDERS CONTINUE TO CASH OUT, U.S. FINANCE COMPANY BAILS AS WELL - THE END IS NEAR

While huge volumes continue to indicate that "insiders" are running to rescue any possible cash from Allied Brands and their collapsed share price, it is confirmed today that the costly US finance deal, touted as a major coup by deposed CEO Shane Radbone and Chairman Lachlan McIntosh, entered into only on January 15, 2010 has collapsed in spectacular fashion.

SPRINGTREE PULLS OUT

As predicted by this blog.

Investors have to be wondering what kind of dodgy "due diligence" was done by Springtree on this obviously corrupt company. This deal was said to be the energiser for increased expansion of Allied Brands, but as Springtree management soon learned their cash was squandered at keeping the leaking boat afloat. Springtree has run for their lives after only a few short months. Interim dodgy CEO Sean Corbin has been quoted as saying ABQ cancelled the agreement "to preserve shareholder value".

What a pile of shit! Under this current leadership ABQ has MORE THAN DOUBLED the number of shares issued to over 200 Million. What's been done with all the cash - besides insider bonuses, cars, and other management perks? And when is sacked CEO Shane Radbone going to pay back his "sweetheart loan" he made to himself from shareholder funds?? How can any of the directors justify this illicit use of company cash while knowing full well the company was burning cash and making no money? WHERE IS ALL THE UNACCOUNTED-FOR CASH??

In typical Allied Brands style, they have titled the document "Finance Facility Closure" in order to mislead the market, when it should be titled "Finance Facility Cancellation". This company can't tell the straight truth about anything!

With banks shunning the company, cash dried up, the company ignoring unpaid bills, and buzzards circling the Gold Coast Highway, the inevitable is at hand. One can only hope criminal charges will be laid on the directors of this company that has abused, mistreated, gutted, and bankrupted so many others.

NEW ZEALAND CORPORATE REGULATORS OPEN INVESTIGATION INTO ALLIED BRANDS OPERATIONS IN AUCKLAND RETAIL LOCATIONS

It was reported over the weekend that New Zealand Ministry of Justice authorities have opened an investigation on Allied Brands Ltd. (ABQ) operations at several locations in Auckland. In addition to registration and other local law licence failures, more serious charges involving Inland Revenue are also being alleged.

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.

VALUE OF ALLIED BRANDS (ABQ) CONTINUES TO PLUMMET - NOW THE ASX WORST PERFORMING SHARES FOR 2010!!!

CURRENT VALUATION BY MARKET:

$14, 969,000

WHERE IS ALL THE MISSING CASH?

FAILED ALLIED BRANDS MANAGEMENT UNDERMINED BY EMPLOYEES WHO WANT THEM TO GO

As predicted, Allied Brands has released a "presentation" that tries and fails to explain the collapse of the company.

On page three, they have however made one statement that franchisees can agree with!

A share market analyst who has previously evaluated the company's financial statements has been solicited for his comment on this pathetic attempt to defend the indefensible.

ALLIED BRANDS DOWN ANOTHER 12%!

MASSIVE VOLUME ALREADY TODAY

MORE THAN 3 MILLION SHARES

WHAT DO INSIDERS KNOW?

We understand from insiders that the collapse in company value is related to Mr. Jury Wowk's abrupt resignation as company director after only nine weeks in the job. As word starts to spread in the "old boy's network", some are getting out while sticking new unsuspecting investors with a company under siege - ED.

The company is now valued by the market at $15.6M.

ALLIED BRANDS 2010 PERFORMANCE - CAN THE INVESTOR WARNING BE ANY MORE CLEAR? PANIC GRIPS ALLIED BRANDS HEADQUARTERS!

BASKIN ROBBINS DUMPED IN THAILAND, STORES TO BE RE-BRANDED TO COLD STONE CREAMERYS

As announced earlier, Thai franchisor for Baskin Robbins in Thailand, Central Restaurant Group, has closed all the Baskin Robbins shops in Thailand, citing the brand as unprofitable due to high costs imposed by the USA and continual shortages of product and marketing support for the Thai market.

It was announced yesterday HERE that CRG, the previous franchisees in Thailand have now confirmed the opening of up to 40 Cold Stone Creamery shops to replace the failed Baskin Robbins shops.

And today a big celebration in Bangkok with the opening of the first of these converted Baskin Robbins shops to Cold Stone Creamery shops with the US GOVERNMENT IN SUPPORT!

Allied Brands has refused to comment on the stunning collapse of the brand in Thailand, which has seen their share price plummet to less than .12 this week.

This has been quite a stunning development for Baskin Robbins and Allied Brands. They've just reportedly based expatriate management for the region in Thailand - now a country where their previous strong market presence is now ZERO. What is this management office now going to do when there are no BR shops in the area?

Perhaps when Allied Brands loses the Baskin Robbins brand in Australia, they'll also be switching these shops to Cold Stone.

INSIDER BAILS, ANOTHER NEW LOSER JOINS THE ALLIED BRANDS SUCKER LIST

An Allied Brands Ltd. (ABQ) insider, who's name is currently being sought, has bailed on 500,000 shares in a block trade this morning, driving ABQ shares down still further.

If purchased when ABQ first went public, this investor has lost over 70% on this bad investment. One has to wonder who the sucker is that grabbed this block - surely not colleagues of directors at Korda Mentha or HWL Ebsworth, who clearly can see the sleazy actions of this rogue franchisor. How about Shane Heal, who's been brought in to clean up the unsavoury image of Baskin Robbins Australian management?

Clearly no one believes Lachlan McIntosh when he signs a six-monthly report that claims "solid profit growth" when the fact is that profit, per share, is about half of last year's stunning failures. Investors continue to ask - "what did we get for the 100 million additional shares that were issued in the last 18 months". The answer "nothing" seems to be the best analysis yet provided.

ALLIED BRANDS (ABQ) SIX MONTH RESULTS PRESS RELEASE MORE EXAGGERATIONS AND CORPORATE SLIGHT-OF-HAND

Allied Brands Ltd (ABQ) announced their six monthly hype campaign with press releases and public interviews that misstate completely the horror contained in the actual numbers.

SIX MONTHLY REPORT

The key facts as advised today by a share broker at the Gold Coast who follows the Allied Brands Circus are as follows -

==================================

2008 Profit per Share - .016/share

2009 Profit per Share - .011/share

A MASSIVE 50% DECLINE IN PROFIT PER SHARE!

The Awesome Water/Plasma TV brand is collapsing as water shortages end, and founder Anthony Underwood has left in disgust. Allied profit on bad debts in this high-risk venture with overpriced plasma TV's could easily wipe out the total group's profit by the end of the year and leave the company with a warehouse full of unsaleable junk.

Baskin Robbins store on store growth, said to be 12%, is actually in decline after 20% price increases required by Allied Brands. This has likely been a direct result of the sacking of the marketing department at the start of the summer season, as well as the product shortages across the system, product shortages that the company has never disclosed to the market but are obvious to people like me who visit our local shop regularly.

Cookie Man is also finding declining product interest as Allied is now in direct competition with many Cookie Man locations with their other brands.

Note Allied Brands is claiming they are going to "segment report" and then they fail to provide key metrics for the brands, just more hyperbole like "grown significantly" and "improved sales". This is typical Allied Brands furphy reporting and it offers no improvement when hype is done brand by brand.

The company claims they can "resurrect" dormant brands. They fail to acknowledge however how competing against their existing brands with new brand names does anything but increase fixed costs. These fixed costs which have impacted all the brands have seen shop lease costs skyrocket as leases come due, with this factor likely to see an acceleration of closed franchise operations and greatly reduced margins on company-owned sites.

Note also the runway costs that the company has been unable to control:

Employee costs - up 50%

Borrowing costs - up 45%

Administration costs - up 265%

and the most shocking factor:

Cash on Hand - down 42%

The company continues to subsist on cash injections from outsiders now the main source being Venture Capital Springtree USA. Without this cash, during the upcoming slow season Allied will be out of cash.

No one here is recommending ABQ to any client.

=================================

Quite a conflict with the rosy scenario signed off by Lachlan McIntosh!

ALLIED BRANDS ISSUES MORE FREE SHARES FOR STAFF AND CONSULTANTS

BASKIN ROBBINS GENERAL MANAGER SEEN YESTERDAY IN CAVILL AVE.

Another 622,162 shares have been gifted by Allied Brands Ltd. to "satisfy employees and consultants" while the company's major brands continue to tank.

This GIFT is another almost $100K from a company that continues to have massive supply issues with Baskin 31 Robbins USA, where all the ice cream and other supplies come from. Despite this being the summer busy season for Baskin Robbins shops, all the shops have suffered from continual supply problems thruout the season leaving many without adequate product and customers walking away.

The company continues to stonewall repeated requests to explain why number of shares outstanding have increased by OVER 100% with virtually nothing to show for it. Allied continues to collect cash every month from American venture capital suckers Springtree, who are "paid" with increasingly worthless ABQ shares every month.

With Allied said to be in breach of their master franchise agreement for Australia, Baskin Robbins USA management is reported to be meeting with possible replacement companies to be ready when ABQ finally carks it.

In one email this week a Baskin Robbins Cookieman franchisee reported sales one day of just $110. These owners are spending over 100 hours a week in their shop and losing money like crazy. More free cash for ABQ employees is not helping them at all.

BASKIN ROBBINS EXECUTIVE GUILTY OF FRAUD AND IMPRISONED FOR UP TO 20 YEARS

In a stunning admission of corporate kickbacks, Baskin Robbins director of Global Communications and Corporate Social Responsibility Carolyn Kravetz pleaded guilty to multiple charges of profiting illegally from steering contracts to her mates. Contracts paid for BY THE FRANCHISEES!

"CORPORATE SOCIAL RESPONSIBILITY"? WHAT A JOKE!

READ HERE

The guilty plea was for crimes that included receiving kickbacks from a vendor of advertising materials to Baskin Robbins. It's unclear if the sacking of the Australian Baskin Robbins marketing director is related to this investigation and guilty plea.

Clearly a culture of corporate dishonesty exists at Baskin Robbins and the parent Dunkin' Brands. When do the franchisees get some of their ad fund money back from this out-of-control company?

BASKIN ROBBINS DEFRAUDING MORE KOREANS AGAIN - 배스킨라빈스 경품약속 안지켜 ‘압류딱지’

Baskin Robbins in South Korea has had office equipment and air conditioners seized from its offices in Seoul due to a court judgement that found the "winner" of a Baskin Robbins contest giveaway has been defrauded by the company.

READ THE STORY HERE IN ENGLISH

READ THE STORY HERE IN KOREAN

Are there any honest people at this company?

ALLIED BRANDS CONTINUE TO WASTE CASH ON COMPANY OWNED SHOPS KNOWN AS UNSALEABLE DOGS

Allied Brands (ABQ) staff continue to reveal where much of the cash raised by the extra 100 MILLION SHARES ISSUED has been going.

The Baskin Robins portion of ABQ is reported to be running over nine shops that have been repossessed or abandoned by their former franchisees as unprofitable dogs. Many of these shops are in regional areas and are run essentially unsupervised - with young teenage managers being (under?)paid, no marketing being done, while company sales staff attempt to find new suckers to take over these failed shops.

Why is Allied Brands so desperate to keep these failed shops on the books instead of just closing them?

Insiders report that these shops haven't been closed because the master franchisor agreement with the US arm of Baskin Robins that requires store numbers to grow. So instead Allied Brands continues to lose $100,000 or more per year on each location --- what may be over $1,000,000 per year on these failed operations!

It is said a breach of this franchisor agreement is being investigated by Baskin Robins USA.

The manager at the company-operated Oasis Shopping Centre location on the Gold Coast has reported the store doesn't even stay open the same hours as the centre despite being a lease violation. Takings at this once successful shop now are said to be unable to even cover the rent at this high-profile location, less than a km from Baskin Robins head office.

This issue is just one of the cash drains on Allied Brands that are burning cash now at what looks to be a record rate. The "free" Bayswiss stores dumped on ABQ by the smart people at Freedom Furniture are also costing big money. With few new franchisees believing the furphys that spew from Allied Brands, the handwriting is clearly now on the wall.

SUCCESS! BATTLER RIPOFF AVERTED BY INVESTOR WHO GOOGLED "BASKIN ROBBINS AUSTRALIA" BLOG

TO THE BASKIN BLOG:

We live in New South Wales, are a couple in our late 40s and I received a shock redundancy last September. The company I worked at for over 20 years used the financial crisis to clean out the oldies, as the GenYs would say. With a reasonable redundancy payout we thought a franchise business would be a good seachange for us. We've had the Baskins ice creamery around the Gold Coast when on holiday and figured it might work well near our home. We had several long discussions with (xxxxx name deleted xxxx) in the Baskins sales department but were finding them evasive in thier answers to our questions. Still we thought it might be a good idea, until we googled Baskins Robbins and found your blog.

At first we thought it exaggerated. How could a company continue to sell shops when so many failed? Why would anyone buy a Baskins shop only to see it worth half or less at the end of the five year agreement time? We talked to several shop franchise owners and every one asked if I wanted to buy THEIR shop! But they too were all secretive about the problems and performance guidelines.

Finally we spoke to a shop owner who also has a Subway shop. They compared the two companies to each other, and showed how much their Subway business had grown in value while the Baskins business was essentially worthless.

Your blog is a very good public service for new business people. While we wanted to get a Subway shop, the demand is very strong and only regional locations are available. So instead we settled on Boost Juice - and we start our training soon. The Boost Juice staff are helpful and open and we look forward to working with them.

ASX ISSUES WARNING TO ALLIED BRANDS LTD CONCERNING EXCESSIVE SHARE DILUTION

The Australian Stock Exchange has contacted directors of Allied Brands Ltd (ABQ) and CEO Shane Radbone about the excessive share dilution that they along with other Australian companies have been engaged in over the last year.

ANNOUNCEMENT HERE

Allied has issued almost 50% more shares with little growth in the company. Many of these shares have been used for operating funds due to the cash burn by the company, as well as director and management perks including below market loans.

THE 2008 ANNUAL REPORT SHOWED 92million shares issued. As of today, Allied Brands has issued 100MILLION SHARES since then, totaling now over 192million shares! AND borrowed almost $5million in highcost venture capital money from America. What have they done with all of this money?????? WHERE HAS ALL OF THIS ALMOST $25millon gone?

The shares in Allied Brands continue to decline - shares are now below .14 cents despite a desperate PR campaign with Gold Coast mates.

Clearly the ASX announcement is targeted at companies like Allied Brands Ltd., who have engaged in massive share dilution to keep the company afloat.

DETAILS OF VC MONEY IN ALLIED BRANDS SHOW HIGH COST TO SHARE HOLDERS, MORE SHARE DILUTION, AND LIKELY BANK REJECTIONS

Allied Brands Ltd (ABQ) has made what they claim is a huge announcement about Venture Capital investment into ABQ. Details of the cash injection continue to reveal what share brokers have already been advising clients about ABQ - to run far away.

Venture Capital money is last resort, high priced money that ABQ has tapped when banks and other normal sources of operating capital have rejected more money for a company. DETAILS HERE of the Springtree investment show ABQ paying huge upfront fees of over $160,000, high interest on cash drawdowns, and perhaps other details not revealed by the company in their market statement. This isn't acquisition money - its operating funds!

Is Springtree going to install their own director on the board to watch where their money is going? How can $100k/month in cash be anything but more money to squander? Why is Allied Brands biggest competitor, Retail Food Group (RFG) comfortably making acquisitions with the huge cash flow normally generated by franchise service companies?

ABQ continues to show that they are clever at keeping outside cash flowing in, while franchisees continue to see profits decline and shops continue to close. Clearly the ASX market isn't fooled by all this trickery - as ABQ shares continue to decline. ABQ has seen over 50% share dilution in the last year, with profit forecasts continually missed by massive amounts, and squandered opportunities continue all while cash injections have been spent on management share loans and other insider perks.