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Brisbane, Australia- Allied brands lifted its 4 day trading halt today with an announcement released to the Australian Stock Exchange stating that it had resisted an attempt by Dunkin Brands Inc to terminate its Baskin Robbins Australian Master Franchise agreement.
Dunkin served the troubled Franchise brand manager a termination notice on the 10th September , but after exchanges between the parties and their lawyers, agreed not to action the termination but reserve their right to do so.
Allied continues to control and distribute to the franchise network while further discussions take place, stating that:
Allied Brands disputes the grounds of the purported termination and will defend strongly its position if a resolution cannot be reached.
The company is already being sued for misleading and deceptive conduct by a former employee and is also in litigation with other employees but this latest dispute looks set to delay or derail its planned capital raising measures.
It is still continuing negotiations for the sale of its franchise chains, Villa and Hut and Awesome Water.
An update regarding assets sales and the capital raising is expected by Tuesday 21st September.