JUST ONE SHOCKING EXAMPLE OF ALLIED BRANDS (ABQ) MANAGEMENT FAILURE TO MEET ANNOUNCED GOALS

Investors day by day are discovering the shocking level of non-performance by Allied Brands (ABQ) management despite their grandiose announcements. These announcements are apparently designed to sucker in more investors and placate the angry existing investors. Because they never come to pass.

On 3rd December 2007 Allied Brands gave the media and market THIS PRESS RELEASE from Managing Director Peter Graham about an "aggressive expansion" in Western Australia designed to give a "significant boost" to store numbers across the brands. It says:

• "Kenny's Cardiology currently has two stores in WA. We expect to increase that to 18"

• "Baskin Robbins and Cookie Man are earmarked for similar expansion from their current stores numbers of eleven and three"

Over two years later, what is the result?

• Kenny's Cardiology - from 3 to 5

• Cookie Man - from 3 to 5

• Baskin Robbins - FROM 11 to 10!

(numbers from company websites)

AT LEAST FORTY EIGHT SHOPS SHORT OF THEIR SO-CALLED TARGET!

Two of these three failures, Kenny's Cards and Baskin Robbins are under the general management of Tony Cavanaugh, an ex-Wendy's Ice cream manager, who was PROMOTED despite these stunning failures in Western Australia. And also despite the fact that there has been NO downturn in the Perth area economy despite the global finance crisis! If ABQ can't grow the brands in a hot market like Perth, something is seriously wrong.

The big problem is the disappearance of $10M capital raising that was done to raise funds for this "aggressive expansion" at the time of this December 2007 announcement. This money was, according to the company, going to be used to secure sites and open shops prior to having a franchisee in place.

WHAT HAPPENED TO THE $10M FOR THIS NON-EXISTANT EXPANSION THAT'S NOW LONG GONE?

ALLIED BRANDS SHARES CONTINUE PRICE COLLAPSE AS GOOD NEWS INCREASINGLY HARD TO FIND OR INVENT

Allied Brands (ABQ) said in a market announcement last week (21st April) "The company will be in a position to give an overall update to the market by the end of April on results to March 2010".

The end of April is come and gone. Once again another LIE by Allied Brands. Of course the last set of announcements before the last annual report saw Managing Director Peter Graham insisting the company was "on track" to a $6million to $7.5million annual profit when just weeks later the company so spectacularly missed these numbers. So we should be thankful that Shane Radbone hasn't yet figured out what story to tell the market on Allied's behalf.

Especially as there has been no explanation for the departure of Director Jury Wowk after barely nine weeks inside the company. Likewise the disappearance of investors Tom Krulis (Godfrey's) and Barbara O'Brien (Breville) who've made themselves scarce after big announcements of their participation. Guess when you're that rich, you can do your dough on a company like this and still take advantage of the tax loss.

The question of the week - is it a conflict of interest for Chairman Lachlan McIntosh to appoint Korda Mentha as liquidator, seeing he's also a director at Korda Mentha? Or is this just mate's rules???

The company is now valued by the market at $17.8M.

Allied paid:

$7.1 MM Awesome Water

$5.8 MM Kenny's Cardiology

$5.83 MM Cookieman

$2.8 MM Villa & Hut

$.15MM Coffee Bean & Tea

$ 0 Bayswiss (known moneyloser)

$21.7MM PAID BY ALLIED FOR THESE DOG COMPANIES

And the company did some "fast and loose" with the Awesome Water purchase, leaving the sellers short by some $4MM, according to insiders.

Plus the only real operation, Baskin Robbins Australia which was sold to the market for $4.8MM at the original float, which was said to represent only part of the company's worth.

TOTAL INVESTMENT BY ABQ INTO THESE

ALLIED BRANDS COMPANIES

$26,455,000

Time for someone with skill and talent in running franchised businesses to come and pick up this carcass for a song.

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 (ABQ) FOUND GUILTY IN EMPLOYEE ABUSE CASE BY FAIR WORK AUSTRALIA - SHOWS DIRECT TIES TO ABQ DIRECTOR

In documents just published today, Allied Brands, who were running the Kenny's Cardiology shop at Port Macquarie, was found guilty of unfair dismissal after a manager questioned the financial viability of this shop that they were trying to sell to sucker franchisees.

CASE REPORT HERE

According to the court case the employee had discussions with an unnamed director of Allied Brands, and said "The discussion included the applicant asking about the rent in arrears; stock that had been ordered but not arriving because the accounts were on hold; and the profit and loss statement that didn’t seem right. "

"The applicant also discussed how frustrated she was because she had not received employer contributions to superannuation since October 2008, and had notified the tax office because the issue had not been resolved."

Fair Work Australia found the dismissal illegal, calling it "harsh, unjust, and unreasonable".

• ILLEGAL DISMISSAL TO COVER UP A FINANCIALLY UN-VIABLE SHOP

• FAILURE TO PAY ENTITLEMENTS AND SUPERANNUATION

It's unknown if a franchisee was ever put in this shop which even employees could see was a financial black hole.

Clearly the illegal activities of Allied Brands are being orchestrated from the highest levels in the company.

NEW DIRECTOR JURY WOWK BAILS AFTER NINE WEEKS - SHOCK ANNOUNCEMENT ROILS ALLIED BRANDS MANAGEMENT - "WHAT A FUCKING MESS THEY'VE GOT GOING HERE"

In a shock announcement to the market today, Allied Brands announced this morning the resignation of Director and Company Secretary Jury Wowk.

AFTER JUST NINE WEEKS!

On 5 February 2010, Allied Brands (ABQ) CEO Shane Radbone announced to the market the "appointment of Mr. Jury Wowk as a new independent Non Executive Director and joint Company Secretary" for Allied Brands.


Jury Wowk is a solicitor and employed by high profile law firm HWL Ebsworth Lawyers in Sydney.  


It isn't known yet what kind of financial and legal mess so scared Mr. Wowk that he ran for the hills two months into his directorship.  It is known that Mr. Wowk's partners at HWL Ebsworth were distressed that he was now being associated with such a disreputable firm as Allied Brands Ltd.  He would also be aware of his possible criminal exposure if the actions of this company aren't in conformance with the law.  This kind of quick resignation is an extremely serious indicator of what's going on inside the company - especially with the cryptic announcement made by the CEO.


Wowk is also a director at PPK Group, one of the largest investors in Allied Brands along with personal investments by PPK Directors Raymond Beath and Glenn Molloy.


Shareholders rightly should be concerned, and ask Jury Wowk directly how safe their investment is with Allied Brands!  Email him at jury.wowk@hwlebsworth.com.au  or call him at (02) 9334 8555.


And while you're speaking to him, ask him what's become of the missing Managing Director Peter Graham.

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

MISSING MANAGING DIRECTOR AND REQUIREMENT FOR "CONTINUOUS DISCLOSURE"

Public companies like Allied Brands Ltd. are required by ASX and ASIC rules to tell ALL investors significant information in a timely way so as to not be disadvantaged compared to insiders.


CONTINUOUS DISCLOSURE RULES HERE


Peter Graham, an original founder of Allied Brands, is still claimed to be the "Managing Director" of this company. But ABQ investors are starting to ask the question - "why has no disclosure been made of the apparent fact that Mr. Graham has no office, and many ABQ staff are aware that he has had no management role at ABQ for many months"???


"Who's really Managing Director, and why haven't shareholders been told"??


Speculation is growing that many of the battler Gold Coast investors who purchased into ABQ in 2004 based on Graham's "great local company" bullshit will add to the growing exodus of shareholders if they hear he's no longer at the helm. Clearly the company is in deep financial troubles with monthly cash injections from Spring Tree paid for by more and more shares worth less and less every day. 


Secondly, it's rumoured that Peter Graham is integral to the contractual relationship between ABQ and Baskin Robbins USA, which will collapse if/when they find out Graham is no longer making any of the company's decisions.


Finally, speculation is that's he's been made the "fall guy" the company is going to shove forward to answer for the company's collapse.


Where is Peter Graham? Why is he still collecting a big cheque but doing nothing?