ANOTHER FAIR WORK CASE FOUND AGAINST ALLIED BRANDS (ABQ) VILLA & HUT SHOP - ADDITIONAL CASES BEING INVESTIGATED?

For the second time in as many weeks an Allied Brands subsidiary, this time Villa & Hut in Melbourne, has been found guilty of unfair dismissal of an employee under even stranger circumstances than last week's decision on Kenny's Cardiology.

READ DECISION HERE

Allied's strategy in this case was first to dispute the exact legal name of the entity being charged by the government, and then repeatedly delaying the tribunal, and then finally failing to appear at the hearing.

The commissioner found in favour of the employee and ordered back wages to be paid in full.

There are reports that NSW is investigating the pay and hiring practises of several Baskin Robbins shops in the Sydney area including the flagship Opera House location. Charges may be filed in these cases shortly.

ALLIED BRANDS & DUNKIN DONUTS HIRE SPIN DOCTORS INSTEAD OF ADDRESSING FRANCHISEE DISASTER

Leading franchise news website BlueMauMau has this weekend reported that Allied Brands (ABQ) and parent Dunkin Brands, reeling from several Australian government investigations, have hired spin-doctors in an attempt to salvage their arses from this mess.

RF BINDER HIRED TO SPIN

THE END IS NEAR FOR BASKIN ROBBINS AUSTRALIA AS STOCK DWINDLES

Franchisees today were shocked to be told that

Allied Brands Ltd and

Baskin Robbins Australia are

OUT OF VANILLA ICE CREAM.

This leaves the shops access to less than 12 flavours.

OUT OF VANILLA?

THE END IS NEAR.

AMBUSH NEWS REPORTERS LOOKING FOR LACHLAN MCINTOSH, TOM KRULIS, & FRANZ MADLENER

A producer from ambush news programme "Today Tonight" has been attempting to contact Korda Mentha, Lachlan McIntosh, Tom Krulis, and Franz Madlener about the goings-on at the failing Allied Brands Ltd. (ABQ).

Should be fun when they catch up with them, and start asking the tough questions while they run for their cars!

ABQ MANAGING DIRECTOR RUNS OUT, CASHES OUT, ON LOUSY ANNUAL RESULTS

On the heels of of another failed year for Allied Brands Ltd (ABQ), managing director Peter Graham is apparently being shown the door by other management - and is cashing out at a huge loss on his way out.

After close of trading today, Graham revealed he's been selling off big.

ASX ANNOUNCEMENT

Note in this announcement the massive number of options held by Graham and his family that expire very soon - options that are totally underwater due to the company's collapse and continued huge cash burn. No one knows why these options were "awarded" by the company, but the price has never even been close. How can it, when stores continue to open, fail, and close?

With the company diluting shares even further this week, issuing another 5million at 14+ cents, the Grahams have clearly signaled that the share price can only go down from the current .155 cents, and are running for the door now.

Graham has clearly lost the support and respect of his fellow directors, who like the franchisees blame Graham, his son, and brother David for the failure of brands Baskin Robbins and CookieMan.

Note also the annual report (page 71) acknowledges that the Graham brothers owe hundreds of thousands (over $320,000) to the company for a failed defense and settlement for their actions as directors--apparently more abuse of franchisees. This legal action was not covered by the company's insurance--as the annual report notes, director's insurance does not cover acts of "bad faith". This debt was not disclosed previously by the company, nor apparently did the auditors know about the debt. The ASIC is investigating this "oversight" along with other misleading statements made by the company.

It was Peter Graham that continued to tell the market the company was "on track" to a $6million to $7.5million annual profit when just weeks later the company so spectacularly missed these numbers and continues to bleed cash on a massive scale. So short is cash that the company is no longer providing Baskins franchisees with their "Flavour of the Month". They apparently can't afford to stock these additional flavours!

The Grahams have driven this company into a ditch - for the third time. Dunkin Brands has signaled it's time for these failed businessmen to go - even as the rest of the weak management team tries desperately to stem the huge cash burn that spells doom in the next few months.

ALLIED BRANDS ANNUAL REPORT - ANALYSTS CONFIRM AMPLE EVIDENCE OF IMPENDING DOOM

A leading financial share market analyst has confirmed key items buried in the summary annual report for Allied Brands Ltd. (ABQ) show continued evidence that franchisees are failing in large numbers. This is especially true for the Baskin Robbins and Cookie Man brands, where years of franchisee abuse has made these shops virtually impossible to sell.

Note 3 in the Report has $559,000 for "provision for doubtful debts". This is primarily franchisees who are being "propped up" by Allied Brands so they can cover up the reality of these shops. Shop owners are being pressured into signing deeds to secure these loans - loans that Allied Brands knows in their reporting that will never be paid!

Insiders also confirm that cash reserves are dropping dramatically.

More store closings have occurred recently, and more are coming. The once strong brand presence in Perth by Baskin Robbins has gone pear shaped - from 19 shops to less than 10, with others for sale (but unsellable).

Likewise the Villa & Hut shops were clearly not making money for founder Franz Madlener, and because little due diligence was done by Allied Brands the full impact of the cash-draining operations are now being realised. Madlener has been cut out completely of any real management responsibility as he is seen as a weak and ineffectual manager.

QUESTION: IS HACKETTS GOING TO PUT THEIR REPUTATION AND BUSINESS ON THE LINE BY SIGNING-OFF ON THIS KIND OF REPORT?

ALLIED BRANDS PARTNER DUNKIN BRANDS ANTI-FRANCHISEE TACTICS ORDERED EXPOSED BY COURT

Dunkin Brands, partner with Allied Brands Ltd (ABQ) in the Australian operation of Baskin Robbins, has been ordered by American courts to disclose their alleged illegal tactics used to drive franchisees out of business and steal their locations for resale.

ALLIED BRANDS TACTICS LEARNED FROM AMERICAN PARTNERS EXPOSED HERE

A steady stream of franchisees

from Detroit to Brooklyn to Ohio have told similar tales of being pushed out by Dunkin' at fire-sale prices, many losing their life savings when they refused the Dunkin offer.

Similar stories have come from Australian Baskin Robbins franchisees who have similar problems with this rogue franchisor. On Ocober 4, 2007, Dunkin' Director of Operations Len Hohmann had warned fellow Dunkin' execs: "moving forward, please do not email... and let's communicate by phone." Similar instructions have been given by Allied Brands management to middle management employees, who are warned to avoid responding to any franchisee complaints via email, only by telephone.

To the writer who's expressed concern about their employment at an ABQ-associated company, please be assured. . . . .and thanks for the informations.

ORGANISED SHARE CHURN OF ALLIED BRANDS FAILS AS INVESTORS SMELL A RAT

The two week share market blitz being investigated by both the ASX and ACCC has failed to move the shares as hoped by management.

With over 8 MILL SHARES traded in two weeks (1/3 the turnover for the year!) the stories in the Rivkin Reviews clearly were seen as false by the market. The Rivken Report is considered to be a "book for hire" by low-value share companies trying to save their companies.

All the while reputable franchisors like Retail Food Group (RFG) continued to power forward on the results of profitable franchisees, efficient and competent management, and good economic planning. Real investors continue to pile into this company, while the real investors buggered in their collapsed ABQ investments look for the exits in droves. Baskin Robbins, Cookieman, Kenny's Cardiology, Awesome Water, and now Villa and Hut franchisees all continue to express fear of the impending collapse of their franchisor.

ABQ middle management, fed up with director-level decisions that give them increasingly worthless shares while the underlying problems are unaddressed, continue to leave the firm only to be replaced with less experienced and less competent wankers.

All that's left this month is the annual report - so filled with shonky claims that only a day or two will go by before these shares resume their downward trek again. The only question for market watchers is how many shonky claims will be allowed in the report by auditor Hacketts? Are they willing to continue to put their reputation and licence at risk for ABQ directors?

ALLIED BRANDS LAUNCHES MASSIVE SHARE DEVALUATION PROGRAM

Allied Brands Ltd has today launched a plan to find 2,000,000 more suckers interested in buying shares and enjoying their fall towards zero.

ABQ SHARE RIPOFF

This represents another 12% dilution of existing shareholder equity. The majority of these funds to be given (loaned, haha) for the purchase (gift) of $750,000 to the current non-performing CEO, Shane Radbone.

AND AS PART OF THE "EXTRAORDINARY" MEETING, MANAGEMENT HAS ASKED FOR THE RIGHT TO ISSUE ANOTHER 15% OF NEW SHARES! MORE DILUTION!

ALLIED BRANDS MOTTO

VILLA & HUT - ANOTHER SMALL FRANCHISE TO BE VICTIMISED BY THE PROS AT ALLIED BRANDS

Allied Brands Ltd. has announced, over the signature of Peter Graham (profiled below), the purchase of another small franchise group.

Welcome, new small business franchisees to be victimised! Read about your future with Allied Brands in this blog! Kiss your business goodbye!!

Villa & Hut is a two-business company. One part sells overpriced furniture and other homewares junk imported from Indonesia and elsewhere. The kind of products that stop selling during recessions. The other part is an eco-friendly coffee shop chain. Despite talk of synergies and cost savings between this part-coffee-shop chain and CookieMan, this has never come to pass with the previous acquisitions by Allied Brands. It won't be long I guess before these Kafes are selling bad cookies instead of their current line of unique "eco-friendly" products.

In the announcement, Allied Brands is paying "$1M and assuming debts of $1.8M". Does this sound like a successful business? It mostly sounds like the bailout of a failing, distressed business from a failed franchisor. With this kind of debt load, the ACCC should investigate if Villa & Hut was trading while insolvent - the giveaway price to Allied Brands seems to indicate trouble, despite claims to the contrary.

And the announced finance strategy is stranger still. Allied Brands claims the business is "cash flow positive" despite the massive debt load and giveaway price they are paying. Allied Brands is offering existing shareholders $10K in additional shares, up to $2M in new capital. Why are they raising $2M when they only need $1M to pay Villa & Hut?

Allied Brands CEO Shane Radbone is acquiring 5.0M shares in ABQ at .15 ($750,000), paying for this new stock with an "executive loan" from the company! So existing shareholders are being asked to see their shares diluted further in order to give $750K to the CEO of a failing company! Usually, executives are rewarded for success. The continuing decline of Allied Brands operations, bleeding of cash, inability to sell new franchise locations, and share price collapse are not by any measure "success". And yet $750K is being stripped from the company's declining cash reserves to reward Mr. Radbone? Breathtaking!

The company announcement says this loan for shares is being provided "on commercial terms". What commercial terms? There is no commercial bank on earth that would loan 100% of the purchase price on Allied Brands shares, or any other shares. Isn't 100% share leverage illegal? Isn't this one of the greedy tactics by business that has caused the world financial crisis?

Additionally, Peter Graham's announcement admits that the additional money raised is being used to "prop up" the company's working capital!

DEAL SUMMARY

Buy a $1M company, get almost $2M in debt and ask shareholders for another $2M in capital, give a third away to a non-performing CEO, and use the rest to plug the cashflow hole in the existing businesses.

***

We are attempting to contact Villa & Hut founder Franz Madlener to determine why he's selling what was previously thought to be a successful company so cheaply to these Allied Brands charlatans. Previously awarded as a "SmartCompany" award winner, Madlener has clearly made a deal with the devil for unknown reasons. These are not the actions of a "SmartCompany", they are the actions of an ignorant fool. As well as the existing franchisees who have already been in touch with this blog and sound both angry and disappointed in Mr. Madlener, we should have some further information later today. And we look forward to finding out how the many Indonesian and other suppliers to Villa & Hut feel when they hear how fellow Asian neighbours, the Koreans, have had their lives and families ruined by their purchase of Baskin Robbins shops and residency visas.

After the announcement of this "deal" by Allied Brands, initial sharemarket reaction? DOWN! You can bet these people will be in there "spinning" this yarn into something special today. It usually takes a few days to weed out the suckers and get the truth to reflect the reality! With more share dilution (in favour of management) and massively increased debt load, the only possible direction for these shares is DOWN.

UPDATE: ATTEMPTS TO CONTACT FRANZ MADLENER UNSUCCESSFUL. OFFICE STAFF SAID HE WAS "OUT CELEBRATING". WE'LL KEEP TRYING.