Only yesterday, JRE brought you the story of the collapse of Krispy Kreme’s Australian arm. Today, the contagion in the Australian junk food sector has claimed another corporate victim: the Australian franchisee for ice-cream pusher Baskin-Robbins has been placed into voluntary administration. The Haus of Murdoch brings the story:
Baskin Robbins [sic] 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Allied Brands administrator, Vincents Chartered Accountants, said creditors had withdrawn from talks with Allied following the termination of its Baskin Robbins contract and the company was no longer able to trade as a going concern.
“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.
The news sent shock-waves through Australia’s sugary-goods sector, with investors fleeing to safer stocks like Applejuice and Tofu’R’Us. Public anger has focused on shadowy market players known as “dentists”, who are thought to be trying to engineer the collapse of vulnerable junk-food companies.
A bill to establish the Tasty Assets Relief Program, or TARP, has passed Parliament this afternoon and is expected to be signed by Prime Minister Julia Gillard shortly.
Watch this space for more updates on the continuing Junk Food Crisis.