Allied Brands reshuffle

JULY 2010

LISTED 'brandchisor' Allied Brands (ABQ) is hoping a leadership shuffle will bring about some investor confidence in the group.

Following the resignation of CEO Shane Radbone and managing director Peter Graham in the past two months, the company behind confectionary outlet Baskin & Robbins and Kenny's Cardiology, is in a rebuilding phase after a tough 12 months.

Graham will remain on the board as a non-executive director. He says basic businesses are still strong and that his confidence in the company remains.

"At 62 years of age, I heard the bell ringing sometime ago. If you don't move out of the way and let the young guys through, they will run over you anyway," says Graham.

The company raised capital in the US earlier in the year to embark on a robust rebranding strategy.

New York asset management firm SpringTree Global Investors, credited up to $4.9 million of its special operations fund to Allied Brands and its recently established franchising services division.

The funding became available after Allied Brands announced a $150,000 acquisition of four Coffee Bean and Tea Leaf retails stores.

The company had a slight win in combating its falling share price with department store giant Big W taking on its Baskin & Robbins confectionary products. The deal resulted in three Baskin & Robbins products trialled in 50 Big W stores nation-wide.

Chief operating officer Sean Corbin is acting CEO as the group looks to consolidate.