Popular US burger chain Carl’s Jr has placed its Australian stores into voluntary administration, affecting 24 restaurants.
Many stores across the country were closed on Monday as KPMG announced David Hardy, George Georges and Emily Seeckts as administrators.
Hundreds of jobs are expected to be affected across the entire Australian franchise, which is mostly in regional areas in NSW, Queensland and Victoria.
The CJ’s Group independently owns and operates 24 restaurants, while it is a master licensee to the remaining 25 locations, which are owned and operated by third-party sub-licensees.
In a statement, KPMG Australia’s restructuring services partner David Hardy said the initial focus will be ‘stabilising’ operations of the group.
‘We will be conducting an immediate sale process of the existing store network and operations,’ he said.
‘We will be working with all stakeholders, including employees, suppliers and landlords, to maximise the outcome for all parties.’
Stakeholders are expected to be contacted within days, while a creditors meeting has been scheduled for August 7.
Many Aussie burger fans are mourning the closure of dozens of Carl’s Jr stores Down Under
Around Carl’s Jr stores have closed their doors in Australia while four will remain open for now
Just four stores are expected to remain open under the CJ’s Group, while 20 will immediately close.
The voluntary administrators have now assumed day-to-day control of CJ’s Group and are undertaking an urgent assessment of the business and its operations, KPMG said in a statement.
The appointment of administrators excludes the 25 restaurants independently owned and operated by third party sub-licensees.
These restaurants will be transitioned to a direct licensed relationship with CKE Restaurants Holdings, Inc. (CKE) and will face minimal change.
The administration of the Australian stores will not affect locations overseas.
The global group operates in more than 30 countries and is renowned for its big American-style burgers and raunchy television advertisements featuring bikini-clad women.
The beloved burger chain went into administration on Monday
Carl’s Jr had bold plans to enter the Australian market a decade ago, revealing it had planned to open 300 restaurants in Australia from 2016.
The first store opened on the NSW Central Coast in Bateau Bay in February of that year.
But after positioning as a higher-end burger fast-food restaurant with prices more expensive than that of its competitors, it couldn’t predict the downturn in spending on take-out food amid the rising cost-of-living crisis.
