The USA operation of the International brand Aussie Pet Mobile has filed for Voluntary Chapter 11 Reorganization. With no plans to put the brakes on, the mobile pet groomers will continue to strengthen their operations at the franchise level throughout 2012 across the USA.
Aussie Pet Mobile is the worlds largest mobile pet grooming franchise. Its award-winning concept has been voted the #1 Pet Service Franchise in 2012 with approximately 100 franchises in operation, servicing 15,000 pets a month in the USA.
Ian Moses, Founder and CEO of Aussie Pet Mobile Inc said, This was a difficult decision, but it is the necessary and right path for us to take and take now to become a more efficient, financially stronger, and competitive business within our United States operation.
We have met our challenges head on, taking all possible action to secure our long-term position. In recent years, our USA operation has continued to grow but like many franchise systems we found the inability of prospective owners to get suitable financing caused a turndown in the number of franchises awarded. That being said, our current franchise operations continue to grow strongly with revenues up 19% over the past 12 months. We have also strengthened our global network and are now operating in 8 International Markets very successfully said Moses;
We are using this Reorganization to really get back to grass roots and work closely with our existing Franchise Owners to strengthen our operational standards across the USA where we have invested significant funds in our product, service and technology to build a world class customer experience said Moses.
Our Board decided that it was necessary to take this step now to restore the Companys profitability, operating flexibility, and financial strength. We are committed to working as quickly and efficiently as possible to appropriately restructure our American operation so that it can emerge from Chapter 11 well positioned to assure the Companys long term viability and its ability to compete effectively in the USA marketplace. Over the past few years, many well known companies have been forced to seek protection under a Chapter 11 reorganization due to the adverse effects of these economic times. We now have footsteps to follow in order to rebuild and face the future a much stronger and unified company. Moses stated.
Unlike various other Chapter 11 scenarios, there is no plan to reduce or downsize the franchise owner population since they are currently performing at such high levels. On the contrary, our focus is to help our franchise owners continue to grow and expand their businesses to support the continuing demand for pet grooming industry wide, stated Arevalo.
Our international operations have shown dynamic growth. In the last year alone, Canada awarded its 40th franchised territory while Greece was awarded Best Master Franchise at the recent Franchise Association awards in Athens.
Working through this difficult, but necessary action and process, I am confident we will succeed in enhancing our reputation as a global leader known for excellence and innovation, a convenient professional service customers seek out, and a provider that serves communities throughout the United States, we have a proud history here and we will have a successful future. Moses concluded.