I can't believe you guys are still buying shares in this...

I can't believe you guys are still buying shares in this company, that announcement still leaves a lot of bad news out.

This isn't going to be just a "goodwill" adjustment .... closing 15 company owned stores for Kenny's alone will result in lease and staff obligations etc needing to be paid out. A couple million at least, and that's being very very conservative.

Awesome Water .... there is a dispute about approx $4million that the original sellers say is still owned to them

Awesome Entertainment .... there is a whole warehouse of now old generation Plasmas that they were trying to rent. That was a REAL stupid idea.

But all that aside the most dangerous statement is the violation of their loan covenants - and I'm quite sure violation of their agreement with BRINT.
As ABQ is in violation of their loan covenants (their own words) then they may be trading whilst insolvent.

Shane Radbone who has been terminated as CEO was given a substantial loan by the company to buy 5 million shares in ABQ .... what are the chances that the money will be paid back .... pretty slim I think. Maybe he was the one selling large parcels from the 19th to 26th of May, that reeked of insiders selling .... 7,692,308 fully paid ordinary shares were released from escrow on 5th May.
Another 2 million shares will be released from escrow in July.

As if that isn't enough there are Investigations by ASIC and ACCC into ABQ's selling of stores and visa's to people from overseas, such as Korea, China, India.

In light of the latest announcement this is also a bit suss. The shares were issued to pay back $100k they owed.
On 19 May 2010, Allied Brands Limited issued 1,233,046 fully paid ordinary shares and 246,609 options in accordance with the terms of its convertible loan agreement with Spring Tree Special Opportunities Fund.
Accordingly the Company gives notice under section 708A(5)(e) of the Corporations Act 2001 (Cth) (the "Corporations Act") that:
1. the abovementioned ordinary shares were issued without disclosure to investors under Part 6D.2 of the Corporations Act;

I strongly suggest that before buying any shares (or selling any) do the prudent thing, ring a couple of stores and talk to the Franchisees, they will be more than happy to tell you how it is.

Theres more but I'm missing Underbelly .... or am i lol.