US burger chain Carl’s Jr has placed its Australian stores into voluntary administration, affecting 24 stores nationwide.
CJ’s Group is a licensee of Carl’s Jr. restaurants in Australia and independently owns and operates 24 Carl’s Jr. restaurants. The CJ’s Group also serves as the master licensee to 25 Carl’s Jr. restaurants independently owned and operated by third party sub-licensees.
The appointment of voluntary administrators excludes the 25 restaurants independently owned and operated by third party sub-licensees, which are expected to continue to operate with little to no impact.
On Monday 29 July, KPMG announced David Hardy, George Georges, and Emily Seeckts were appointed administrators of Carl’s Jr fast-food stores across Victoria, New South Wales and Queensland.
After an initial assessment, the administrators decided to close 20 stores immediately in a move that will affect hundreds of jobs. Only four of the owned and operated CJ’s Group restaurants will remain open.
David Hardy, KPMG Australia’s Restructuring Services Partner, said the initial focus will be on stabilising the operations of CJ’s Group.
“We will be conducting an immediate sale process of the existing store network and operations. We will be working with all stakeholders, including employees, suppliers and landlords, to maximise the outcome for all parties.”
The franchisor, Carl’s Jr. Restaurants LLC, a subsidiary of CKE Restaurants Holdings Inc. (CKE), is not in Administration and global operations including restaurants owned and operated by licensees other than CJ Group continue to operate business as usual.
A meeting of creditors is scheduled for 7 August 2024.
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