In Australia, the popular fast-food restaurant chain Carl’s Jr., which is based in the US, has entered into voluntary administration.
The company’s 24 local stores were closed on Monday.
The administrators, who are Emily Seeckts, David Hardy, and George Georges, are expected to impact hundreds of jobs.
While the company’s 24 restaurants are owned and operated by its own entity, CJ’s Group, 25 of them are operated by third-party entities.
In a statement, David Hardy of KPMG Australia, said that the administrators’ initial focus is on stabilizing the company’s operations.
The administrators said they will begin the process of selling the company’s existing operations and store network.
They will work with various stakeholders, such as its landlords, employees, and suppliers, to try and maximize the outcome for everyone. A creditors meeting will be held on August 7.
Twenty of the company’s restaurants will immediately close, while four will remain operational under the CJ’s Group.
Administrators excluded the 25 restaurants that are operated by third parties.
These establishments will be transferred to CKE Restaurants, which will have minimal impact on their operations.
The company’s operations in other countries will not be affected by the administration of its Australian branches.
In 2016, Carl’s Jr. announced its ambitious plans to expand its presence in the country by opening 300 restaurants in the next two years.
The first of these stores was opened in Bateau Bay on the NSW Central Coast.
Since it was perceived as a higher-end fast-food restaurant that charged more than its competitors, Carl’s Jr. was not able to predict the impact of the rising cost of living on its customers’ spending.