Carl’s Jr Shuts Down Most Stores in Australia

In a surprising turn of events, the fast food chain Carl’s Jr is facing a tough situation as its owner, CJ’s QSR Group, has gone into voluntary administration. This news has left many employees and customers in Ballarat wondering what the future holds for the beloved burger spot.

As of July 29, KPMG Australia has been appointed as the voluntary administrators, and they have some big changes in store. Out of the 24 Carl’s Jr locations across Australia, only four will remain open while a staggering 20 will close their doors immediately.

The Ballarat store on Creswick Road, which was one of the first Carl’s Jr locations to open in Victoria, is now part of this unfortunate news. When it opened, the company saw Australia as a great market for growth and expanded to a total of 49 stores. Sadly, they were also trying to fill 120 job vacancies recently.

KPMG’s restructuring partner, David Hardy, stated that their immediate goal will be to stabilize the business operations. They are jumping straight into a sale process for the existing store network and will be reaching out to employees, suppliers, and landlords to ensure the best outcome for everyone involved.

The creditors will have a chance to weigh in during a meeting scheduled for August 7, 2024. This news is particularly concerning as Carl’s Jr is just the latest restaurant in Ballarat to encounter financial woes.

Interestingly, 25 other Carl’s Jr locations in the country were managed by third-party sub-licensees. KPMG has mentioned that they expect minimal shifts in how those stores operate, and the global operations of Carl’s Jr will remain unaffected.