Denninghouse franchisee files for bankruptcy protection

A franchisee, Altimax Variety Ltd., operator of 34 Buck Or Two stores in Atlantic Canada, has formally given notice of its intent, within 30 days, to file a proposal to creditors to settle outstanding claims…In the days preceding this filing, Denninghouse issued notices of default and Altimax responded with a notice of dispute under the dispute resolution provisions of its franchise agreements.

News Release
December 18, 2003

Denninghouse franchisee files for bankruptcy protection
Dennis Klein

DENNINGHOUSE INC. REPORTS A FRANCHISEE, ALTIMAX VARIETY LIMITED, HAS FILED A NOTICE OF INTENT FOR PROPOSAL TO CREDITORS

A franchisee, Altimax Variety Ltd., operator of 34 Buck Or Two stores in Atlantic Canada, has formally given notice of its intent, within 30 days, to file a proposal to creditors to settle outstanding claims.

Denninghouse learned of this filing late yesterday.

In the days preceding this filing, Denninghouse issued notices of default and Altimax responded with a notice of dispute under the dispute resolution provisions of its franchise agreements.

Chairman and chief executive officer, Dennis Klein, said: "Although we have not yet spoken with representatives of Altimax about the filing, we deemed it prudent to report this event because of the number of stores operated by this franchisee. From a financial reporting perspective, any historical amounts owed to us as franchisor are not material. Once we fully understand Altimax's position, we will be able to better evaluate our options with respect to the continued operation of these stores and any future financial implications."

Mr. Klein added: "It is our policy to work closely with franchisees who experience financial difficulties. However, if a franchise operator is unable to continue store operations, Denninghouse generally assumes responsibility for the operation of the store until such time as improved results allow the company to offer the store for resale.

"We are thoroughly committed to Atlantic Canada as a strong market for Buck Or Two. We will strive to ensure our valued Buck Or Two customers are well served in the long term by having strong and successful Buck Or Two stores operating throughout this region."


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