Twenty Carl’s Jr. restaurants in Australia are set to close immediately after the Australian licensee, CJ’s Group, entered voluntary administration.
KPMG Australia’s David Hardy, George Georges, and Emily Seeckts were appointed as administrators on Monday. KPMG stated that the administrators have taken “day-to-day control” of the company and are conducting an “urgent assessment of the business and its operations.” While four restaurants owned and operated by CJ’s Group will stay open, twenty will close immediately.
A spokesperson for Queensland Carl’s Jr. franchisees told 7NEWS.com that none of their restaurants would close, and all 450 staff members would keep their jobs. “It’s business as usual for all Queensland restaurants, which are unaffected by CJ’s Group’s financial situation or its administration status,” the spokesperson said.
CJ’s Group independently operates 24 Carl’s Jr. restaurants in Australia and acts as the master licensee for 25 Carl’s Jr. restaurants run by third-party sub-licensees. These 25 sub-licensee restaurants will continue to operate with little to no impact. KPMG explained, “These restaurants will transition to a direct licensed relationship with CKE Restaurants Holdings Inc.”
CKE Restaurants Holdings Inc., the parent company of Carl’s Jr., is not in administration. David Hardy said the administrators would start an “immediate sale process” for the existing stores. “We will work with all stakeholders, including employees, suppliers, and landlords, to achieve the best outcome for everyone,” he said.
Carl’s Jr. was founded by Carl N. Karcher, who opened the first two Carl’s Jr. restaurants in California in 1956. The first Carl’s Jr. restaurant in Australia opened in 2016 in Bateau Bay, NSW, with several more locations opening in QLD, VIC, SA, and NSW shortly thereafter. The chain is known for its burgers but also offers a variety of sides and desserts.
Fans expressed their disappointment on social media after learning about the closures. “This is actually really devastating,” one wrote. “I’ve never had an order stuffed up,” another said. “I really rate them,” a third added.
KPMG stated that suppliers, customers, landlords, and other key stakeholders would be contacted in the coming days. A creditors’ meeting is scheduled for August 7.