Mystery surrounds the reasons for a dispute between beleaguered franchise brands manager Allied Brands and its global franchisor Dunkin Brands over Allied’s master franchise agreement for the Baskin & Robins chain.
Allied Brands asked the Australian Securities Exchange late on Friday to suspend its shares from trade until the start of Tuesday, September 14, as it tries to sort out the issue.
“The trading halt is requested pending an announcement regarding a dispute involving our Master Franchise Agreement with Dunkin Brands LLC in relationship to Baskin Robbins.”
Allied Brands acting CEO Sean Corbin was not available for comment prior to publication, and no further information about the dispute has been released.
News of the dispute is another blow for the struggling Allied Brands, which recently announced its loss in 2009-10 had slumped to $35 million following a serious of writedowns.
The company is now in the process of trying to rationalise or restructure a number of its brands.
Retail chain Villa & Hut is currently the subject of a management buyout offer; a number of Kenny’s Cardology stores have been closed as that brand is restructured; the Awesome Entertainment business has been closed; and the Awesome Water business is on the market.
Corbin said in a statement released with the company’s results on September 2 that Baskin Robbins “continues to have store on store growth and projected development numbers for this year are promising.”
“This business remains a key element of Allied Brands moving forward and additional resources will be allocated to it.”
Allied Brands shares last traded at 2.5c and have fallen from 17c over the last 12 months.
James was the editor and publisher of SmartCompany and LeadingCompany for five years. He is now the Australian Financial Review‘s companies & markets editor, and a former BRW editor.
