Popular American burger chain Carl’s Jr has placed its Australian stores into voluntary administration, affecting 24 restaurants.
Many shops 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 Australian franchise, which is mainly located in regional areas of New South Wales, Queensland and Victoria.
CJ’s Group independently owns and operates 24 restaurants, while serving as master licensee for the remaining 25 locations, which are owned and operated by third-party sublicensees.
In a statement, KPMG Australia restructuring services partner David Hardy said the initial focus would be on “stabilising” the group’s operations.
“We will be carrying out an immediate sale process of the existing network of stores and operations,” he said.
“We will work with all stakeholders, including employees, suppliers and owners, to maximize the outcome for all parties.”
Interested parties are expected to be contacted within a few days, while a creditors’ meeting is scheduled for August 7.
Many Australian burger fans are mourning the closure of dozens of Carl’s Jr stores in Australia
Around a few Carl’s Jr stores have closed their doors in Australia, while four will remain open for now.
Only four stores are expected to remain open under the CJ Group, while 20 will close immediately.
The appointment of administrators excludes the 25 restaurants that are independently owned and operated by third-party sublicensees.
These restaurants will move into a direct licensing relationship with CKE Restaurants Holdings, Inc. (CKE) and will face minimal changes.
The administration of Australian stores will not affect overseas locations.
The beloved burger chain filed for bankruptcy on Monday
The global group operates in more than 30 countries.
Carl’s Jr had bold plans to enter the Australian market and revealed that it had planned to open 300 restaurants in Australia starting in 2016.
The first store opened on the New South Wales Central Coast at Bateau Bay.
But after positioning itself as a high-end burger fast-food restaurant with higher prices than its competitors, it failed to predict the drop in takeout spending amid the growing cost of living crisis.