Ballarat Carl’s Jr Closes Amid Voluntary Administration

A popular fast food restaurant in Ballarat has shut its doors following the decision of its owner to go into voluntary administration.

On July 29, the accounting firm KPMG Australia was appointed as the voluntary administrators for the CJ’s QSR Group, which operates 24 Carl's Jr restaurants across the country.

While four stores in Melton, Bringelly, Dandenong, and Tarneit will remain open, the Ballarat location is one of twenty that will close immediately.

The Creswick Road Carl’s Jr store was the fourth to open in Victoria and was part of the brand’s plan to expand in Australia, a market they considered key for growth, having grown to 49 locations nationwide.

Previously, the owners had aimed to fill around 120 positions, including casual, part-time, and full-time roles.

David Hardy, a restructuring services partner at KPMG Australia, mentioned their initial goal is to stabilise the operations of the group.

He stated, ‘We will be conducting an immediate sale process of the existing store network and operations.’ The team at KPMG is planning to work closely with all involved parties, including employees, suppliers, and landlords, to ensure the best outcomes for everyone.

In the days ahead, stakeholders will be contacted, and a creditors meeting is lined up for August 7, 2024.

This unfortunate closure aligns with a trend in Ballarat’s hospitality sector as other businesses face similar challenges.

In addition to the 20 stores closing, 25 other Carl’s Jr outlets across Australia are operated by third-party sub-licensees, and KPMG anticipates minimal changes to those locations.

It’s also worth noting that Carl’s Jr locations around the world won’t be affected by this situation.