Baskin brand break signals end for Allied

Baskin Robbins and Cookie Man franchise holder Allied Brands has gone into voluntary administration, after the company lost its licence to operate 92 ice-cream stores in Australia.

Allied Brands administrator Vincents Chartered Accountants said this morning creditors had withdrawn from talks with Allied following the termination of its Baskin Robbins contract and the company was no longer able to trade as a going concern.

Allied had been seeking to raise funds through a convertible bond issue and equity line of credit.

‘‘Over the last year the above businesses struggled in an uncertain economic environment which combined with continued expansion of the group lead to cash flow constraints,’’ Vincents said in a statement.

Allied Brands also holds the franchise for Kenny’s Cardiology, homewares store Villa and Hut and Awesome Group.

Baskin Robbins's owner, Dunkin Brands, terminated Allied’s master franchise agreement late last month, prompting Westpac Bank to appoint McGrath Nichol as receivers and managers of Allied.

The Cookie Man was placed in liquidation by the Supreme Court on September 24 and shares in Allied entered a trading halt.

Vincents said Dunkin Brands is now operating the Baskin Robbins Australia franchise network.

Baskin Robbins is the world’s largest chain of specialty ice cream stores. Vincents have not been appointed in any capacity as administrators of any of Allied’s subsidiaries.

Shares in Allied last traded at 1.7 cents.

AAP