WRITEDOWNS continue for listed brandchisor Allied Brands.
The company’s acting CEO Sean Corbin says a return to basics is required as it braces for further losses in FY 2010 with writedowns of around $32 million.
“There are significant issues that we need to get through and we need to tackle them one by one,” says Corbin.
The company, which has Baskin Robbins, Cookie Man and Kenny’s Cardiology brands in its portfolio will shut down 10 Kenny’s Cardiology stores in Australia and New Zealand but will keep the franchise.
Awesome Entertainment, part of its Awesome Group which had revenues of $15 million, has closed as has a portion of its Cookie Man outlets.
“We have shut 14 out of 230, it’s not a big number,” says Corbin.
Asked whether the company had over diversified, Corbin replied: “There’s no congruence in the company. It’s hard to keep your eye on six or seven different balls with no common ground. We need to get back to basics with every single store that is profitable.”
Corbin concedes that if leverage cannot be attained by a third party financier, the business would likely be forced to sell.
CEO Shane Radbone and managing director Peter Graham both resigned from the company in June.
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