loggerhead does not offer a .bzr/smart when containing directory is missing

[methane]

1. What I did and got.
On server:
$ serve-branches --allow-writes .

On client PC:
$ bzr init-repo bzr+http://foo:8080/foo
$ bzr init --create-prefix bzr+http://foo:8080/foo/bar/baz
bzr: ERROR: Generic bzr smart protocol error: Invalid http response for http://foo:8080/for/bar/baz/.bzr/smart: Unable to handle http code 404: Not Found

2. What I hope.
Create 'bar/baz' branch in 'foo' repo.

push --create-prefix makes same error.

[methane (songofacandy)]

Currently, I use this startup script: http://paste.ubuntu.com/378831/