Carl’s Jr enters voluntary administration, Armstrong Creek store remains open

The fate of Carl’s Jr in Armstrong Creek has been revealed, as voluntary administration sees 20 branches of the burger chain close immediately.

Franchisee of Carl's Jr in Armstrong Creek Mark Creelman says the doors to his business would remain open as some stores enter voluntary administration. Picture: Brad Fleet

The flamboyant US burger chain Carl’s Jr has placed Australian stores into voluntary administration, however the doors will remain open at the Armstrong Creek site.

Mark Creelman, franchisee of Carl’s Jr in Armstrong Creek, said the store was open and ready to serve and would not be affected by the closure of other sites.

He said it would be operating on reduced hours for the coming weeks due to the closure of Torquay Rd during the removal of a level crossing, but from September 2 would be open from 6am every day, closing at 1am on week nights and 2am on weekends.

KPMG announced David Hardy, George Georges and Emily Seeckts had been appointed administrators to Carl’s Jr fast-food stores across Victoria, New South Wales and Queensland last night.

In a statement the parent company of Carl’s Jr Restaurants, CKE, committed to continuing its international growth plan by expanding in key markets globally.

The statement said CKE was working closely with the administrator, CJ’s Group and other interested parties to work through the process with the goal of minimising impacts to employees, consumers and the brand.

“CKE is committed to the people and the brand in the Australian market, and we have an exceptional community of independent licensees operating our restaurants across the country,” a spokesman said.

The 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, including Armstrong Creek, that are independently owned and operated by third party sub-licensees.

The KPMG 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, KPMG said in a statement.

“Based on the initial stages of this assessment, the voluntary administrators will continue to trade four of the owned and operated CJ’s Group restaurants on a business as usual basis,” the statement said.

“Twenty 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, which all remain open.

These restaurants will be transitioned to a direct licensed relationship with CKE Restaurants Holdings Inc.

The voluntary administrators anticipate minimal change in the continued operation of these locations.

The franchisor, Carl’s Jr Restaurants, a subsidiary of CKE Restaurants Holdings Inc, is not in administration and global operations including restaurants owned and operated by licensees other than CJ Group continue to operate business as usual.

“As voluntary administrators, our initial focus will be on stabilising the operations of CJ’s Group,” KPMG Australia’s restructuring services partner Mr Hardy said.

“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.”

Carl’s Jr, which operates in more than 30 countries, had big plans when it opened its first store in Australia in 2016 that included opening as many as 300 stores.

Originally published as Carl’s Jr enters voluntary administration, Armstrong Creek store remains open