Twenty Carl’s Jr. restaurants will immediately close after its Australian licensee entered voluntary administration.
David Hardy, George Georges and Emily Seeckts from KPMG Australia were appointed administrators of CJ’s Group on Monday.
According to a statement from KPMG, the administrators have assumed “day-to-day control” of the company and are undertaking an “urgent assessment of the business and its operations”.
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Four of the restaurants owned and operated by CJ’s Group will remain open while 20 will close their doors immediately.
A spokesperson for Queensland franchisees of Carl’s Jr. confirmed to 7NEWS.com none of its restaurants would be closing, and that all of its 450 staff would be keeping their jobs.
“It’s business as usual for all Queensland restaurants which are in no way compromised by the financial position of (CJ’s Group), or its entry into administration,” they said.
CJ’s Group independently owns and operates 24 Carl’s Jr. restaurants in Australia, and also serves as the master licensee to 25 Carl’s Jr. restaurants owned and operated by third party sub-licensees.
The 25 sub-licensee restaurants will continue to operate with little to no impact.
“These restaurants will be transitioned to a direct licensed relationship with CKE Restaurants Holdings Inc,” KPMG said.
“The voluntary administrators anticipate minimal change in the continued operation of these locations.”
CKE Restaurants Holdings Inc is the parent organisation for Carl’s Jr. and is not in administration.
David Hardy said the administrators will be conducting an “immediate sale process” of the existing stores.
“We will be working with all stakeholders, including employees, suppliers and landlords, to maximise the outcome for all parties,” he said.
The popular US fast food chain 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 was opened in 2016 in Bateau Bay, NSW.
Several locations in QLD, VIC, SA and NSW opened soon after.
The chain is most popular for its burger range, however it also sells a variety of sides and desserts.
Fans took to social media after learning a number of the fast food stores would close.
“This is actually really devastating,” one wrote.
“I’ve never had an order stuffed up,” another said.
“I really rate them,” a third added.
Suppliers, customers, landlords and other key Carl’s Jr. stakeholders will be contacted in the coming days, according to KPMG.
A creditors’ meeting is scheduled for August 7.