This opens up another can of worms for ABQ and even more so for the Franchisses. A lot of the stores are co-branded Cookie-Man / Baskin Robbins. The Franchisees can't just pull the pin on one side of the store, These co-branded stores are set up as two different identities but the bottom line is they are still up for the rent and other asscociated costs on the Cookie-Man side of the store.
Dear Sir As per your letter of the 28th September 2010, Allied Brands Limited offers the following responses.
1. Is Cookie Man currently subject to external administration and/or under the control of a liquidator or a party other than the directors of the Company?
The ASX were informed within an hour of its occurrence on the 24 September 2010 that Cookie Man Pty Ltd a subsidiary of Allied Brands Limited was placed in liquidation by an order of the Supreme Court of NSW. This situation had occurred due to an administration oversight and neither the Board nor senior management had knowledge of this winding up application prior to the appointment. Discussions were immediately entered in to with the liquidator for a stay to be applied for with his consent.. On the 28th September Allied Brands Limited having not been able to get a stay at this point forwarded the attached request for Voluntary Suspension under Listing Rule 17.2.
The company disclosed in this application that the circumstances surrounding the Trading Halt revolved around its financial health and that it was working with its financiers to resolve, as of September 28 the cookie man application for stay of liquidation was unresolved.
ABQ Price at posting:
25.5¢ Sentiment: Sell Disclosure: Not Held
