Theme does not disable blocks/regions when "Disable Drupal blocks/regions" is selected from the Panels Settings

Greetings,

When choosing "Disable Drupal blocks/regions" selected from the Panels "Advanced Settings", the theme I am using, Simply Modern, does not turn off the blocks/regions (the panel layout is only applied to the content area of the page).

I've tested the above Panels page in another theme (the four seasons theme) and it correctly displays the Panels page (removing the blocks/regions when the Panels page has "Disable Drupal blocks/regions" selected).

If anyone knows what might be causing this, and a solution (if you have one) to the problem, please let me know.

Thanks in advance,

Scott