Popular US burger chain Carl’s Jr has placed its n stores into voluntary administration, affecting 24 stores.
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 as the entire n 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 ‘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.
Just four stores are expected to remain open under the CJ’s Group, while 20 will immediately close.
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 n stores will not affect locations overseas.
The beloved burger chain went into administration on Monday
The global group operates in more than 30 countries.
Carl’s Jr had bold plans to enter the n market, revealing it had planned to open 300 restaurants in from 2016.
The first store opened on the NSW Central Coast in Bateau Bay.
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.