Allied Brands and Cookie Man Sale

Franchise brand manager, Allied Brands (ASX:ABQ) have placed franchise, Cookie Man for sale following a NSW Supreme Court liquidation order handed down last week. Cookie Man has around 50 outlets, 46 of which are franchised and four company-owned. The company had recently revealed that the US owners of the Baskin Robbins brand, Dunkin Brands, had threatened to terminate the company's master franchise agreement for Australia, an agreement which is still in dispute.

Allied Brands' troubles are from an aggressive expansion strategy, acquiring a range of retail franchises including Cookie Man, Villa and Hut, Kenny's Cardiology and Awesome Water. The acquisition trail stopped as cashflow problems emerged, culminating in the termination of chief executive Shane Radbone in June 2010.

Allied brands is the owner, operator and developer of major franchise brands in Australia including Baskin Robbins, a major international ice cream franchising system, Cookie Man, Kenny's Cardiology, Awesome Water and Awesome Entertainment.

Allied Brands has been in a trading halt on the Australian stockmarket since 10th September 2010. It was then released on the 14th September. However, the company's shares were again placed on a trading halt on the 24th September and suspended from official quotation on the 28th September.