Taste shares down on Fish & Chips dispute

13 Aug 2012

Shares in diversified franchise company‚ Taste Holdings‚ dropped by as much as 9.38% on Wednesday, 8 August 2012, on news that the dispute of its acquisition of the Fish & Chip Co brand through its wholly-owned subsidiaries‚ Buon Gusto Cuisine could go on until late 2013.

At 3:32pm‚ shares in Taste had dropped by 3.13% to R3.10. Over the last twelve months‚ the share price has tripled.

The company said in a JSE Sens announcement that its attorneys had advised that they anticipated the matter to be heard in the latter part of 2013.

"A dispute arose in regard to the set-off account‚ which consists primarily of deposits paid by prospective franchisees to the sellers. Buon Gusto referred this dispute to its auditors for determination‚ in accordance with the provisions of the agreement‚" Taste said.

According to the announcement‚ the sellers thereafter purported to cancel the agreement and had issued summons in this regard.

"Buon Gusto does not accept the purported cancellation and deems it to be entirely without foundation. It is defending the action and will file a counterclaim in due course. It is furthermore considering instituting various other actions to safeguard its rights‚" Taste said.

Source: I-Net Bridge

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