Comment 6 for bug 90847

For people looking for a solution to this problem in their own repositories:

This file:
.bzr/branch/branch.conf

contains paths to parrent and default puch location.

If you edit it to contain the right path the problem goes away.
At least with:
$ bzr --version
Bazaar (bzr) 2.5.1
  Python interpreter: /usr/bin/python 2.7.3
  Python standard library: /usr/lib/python2.7
  Platform: Linux-3.2.0-32-generic-i686-with-Ubuntu-12.04-precise
  bzrlib: /usr/lib/python2.7/dist-packages/bzrlib