Carl’s Jr Australia master franchisee goes into administration
Only 24 company owned restaurants are impacted with 25 sub-licensee to continue operations.
Full press release from KPMG below:
KPMG Australia’s David Hardy, George Georges and Emily Seeckts were today appointed Voluntary Administrators of CJ’s QSR Group Pty Ltd (CJ QSR), and certain subsidiaries, collectively known as the CJ’s Group.
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 Voluntary Administrators have now assumed day-to-day control of CJ’s Group and are undertaking an urgent assessment of the business and its operations.
Based on the initial stages of this assessment, the Voluntary Administrators will continue to trade 4 of the owned and operated CJ’s Group restaurants on a business-as-usual basis. 20 restaurants will be immediately closed as of the date of the appointment.
The appointment of Voluntary 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). The Voluntary Administrators anticipate minimal change in the continued operation of these locations.
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.
KPMG Australia’s Restructuring Services Partner David Hardy said “As Voluntary Administrators, our 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.”
All suppliers, customers, landlords and other key stakeholders will be contacted in the coming days and a meeting of creditors is scheduled for 7 August 2024
CJ’s Group independently owns and operates 24 Carl’s Jr. fast-food restaurants with headquarters in Melbourne (Docklands). The CJ’s Group has approximately 1,000 employees within Australia.
