- April 6, 2011
The argy-bargy continues in the ongoing struggle to sort out the REDgroup mess.
Yesterday I posted on the report that 25 Angus & Robertson franchisees had released a statement that they were terminating their franchising agreement with A&R (and therefore REDgroup).
Now administrator Ferrier Hodgson claim that the group can’t do that – that is, that REDgroup hasn’t broken their end of the franchise deal.
I know that the administrators are legally obliged to try to get the company back to health if at all possible, but really Mr Steve Sherman (who said that:
“The administrators strongly refute the purported terminations and intend to hold each of the franchisees fully accountable under the terms of the franchise agreements.”
… they don’t have to test the bounds of common sense in the process (that is, treat the public, consumers and franchisees like chumps).
Oh wait, they’ve already done that with their “spend double to redeem your Borders gift cards” anti-promotion.
Now they expect us to believe that, during this administration period (and prior), the slashing of staff and closing of stores, that REDgroup/A&R has been providing franchisees will the full support and infrastructure as detailed in their franchise agreements.
Please. I really don’t think Ferrier Hodgson are doing REDgroup any favours by arguing about this. Again, they’re generating nothing but public outrage against their client.
If Ferrier Hodgson fight this one in the courts, they’ll guarantee that the company suffers death by bad press, and therefore may even be breaking the laws governing company administration.