Embattled Allied Brands chief executive Sean Corbin has admitted that the company has fallen behind on some employees’ superannuation payments, in another blow for the firm’s franchisees and staff.
Corbin, who last week told SmartCompany that he is locked in a day-to-day battle to save the company from collapse, said that while he could not discuss the specific superannuation circumstances of individual staff, the payment of some superannuation amounts had fallen behind.
“There are some issues with super payments,” Corbin says, adding that the problems are being addressed “as much as they can be”.
While Corbin declined to say how far super payment have fallen behind, sources at Allied Brands-owned retail chain Villa & Hut suggest employees have not had their super paid since Allied Brands acquired the chain in early 2009.
SmartCompany has also been contacted by a former Baskin Robbins store manager Suzi Major, who resigned from the company in May after it became clear the company was having trouble paying its suppliers.
After resigning, she checked with her super fund HOST Plus and found she had not been paid for the previous 11 months.
Major says she has referred the matter to the Australian Taxation Office, but she has also contacted Allied Brands to chase up her missing super payments and $550 in bonus payments she is also owed.
However, after talking to suppliers who claim to have invoices outstanding from September 2009, she is not hopeful of getting paid.
“I know in my heart of hearts that I am not going to get it,” she told SmartCompany.
Major, who worked at the Baskin Robbins store at Melbourne’s Southland retail complex – which was owned by Allied Brands – says it became clear from the start of 2010 that there were problems at the company, when some suppliers simply refused to provide Baskin Robbins stores with goods.
In one notable example, she was forced to buy cleaning goods from the local supermarket after the company’s cleaning supplier stopped deliveries.
“I really wanted to stay there. I had some wonderful customers and I really got on well with the other shop owners in that precinct. It was very hard to turn around and say I just can’t work for this company anymore.”
Despite the superannuation problems, Corbin has questioned claims from Baskin Robbins franchisees that some stores are selling as few as 12 of the chain’s much vaunted 31 flavours.
While Corbin concedes there are some shortages in Queensland, he says most stores have a lot more than 12 flavours and says Allied is continuing to order ice cream for its stores.
The mounting problems at Baskin Robbins come as Allied Brands is in dispute with US franchising giant Dunkin’ Brands, the owner of the global rights to use the Baskin Robbins name.
While Dunkin has not commented on the recent issues at Allied Brands, sources suggest it is watching the situation closely.
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.
