Hundreds of Aussie jobs in limbo as iconic burger chain goes into voluntary administration

Hundreds of Aussie jobs are now in limbo after US burger chain Carl's Jr was plunged into voluntary administration. The first restaurant opened its doors on the New South Wales Central Coast back in 2016 and dozens have followed since.

There are 24 locations that are owned by CJ's Group while a further 25 are independently owned and operated by third-party sub-licensees. The two dozen operated by the Australian arm of the US company are the ones that have been placed into voluntary administration.

Only four of the 24 restaurants will remain open while the remaining 20 have been closed down immediately while creditors assess the books.

RELATED

• Grim twist for embattled low-cost airline after Aussies stranded by abrupt shutdown

• Early $1,600 rebates on offer as Aussie mum halves electricity bill: ‘Don’t wait’

• Reason Gen Z workers are twice as likely to call in sick than Boomers

KPMG Australia has announced David Hardy, George Georges and Emily Seeckts as the administrators who will be looking at each restaurant's viability for the future.

A creditors meeting will be held on August 7 and stakeholders will be contacted over the coming days.

KPMG Australia's restructuring services partner David Hardy said their main priority at the moment is "stabilising" the group of restaurant's operations.

"We will be conducting an immediate sale process of the existing store network and operations," he said.

Do you have a story? Email stew.perrie@yahooinc.com

"We will be working with all stakeholders, including employees, suppliers and landlords, to maximise the outcome for all parties."

The restaurants can be found in New South Wales, Victoria and Queensland, with many in regional areas.

The 25 restaurants operated by third-party sub-licensees will be transitioned to a direct relationship with CKE Restaurants Holdings, Inc., which is the American parent group for Carl's Jr.

'Way too much competition' blamed for Carl's Jr's demise

When Carl's Jr first came to Australia, it announced intentions to open up hundreds of restaurants across the country, which would have employed roughly 10,000 people.

But fierce competition with already established fast food empires like Hungry Jacks, KFC and McDonald's put a dampener on those plans.

Aussie fans of the franchise were sad to hear the news but many weren't surprised.

"It's very confusing how they only really had branches in the middle of nowhere. If it opened in the CBD of Sydney near Five Guys for example... it would make a KILLING," said one person.

"It was always a bit too overpriced sadly. And way too much competition for burgers," wrote another.

A third added: "They opened up at a time when American-style burger joints were on every street corner, so there was endless choice at the higher-priced burger market. A lot of those places did a much better job of building their brands through social and influencers. The result was a burger brand that wasn’t cheap and familiar (like Maccas) but didn’t have the size and quality to match the price range (like Betty’s etc)."

Queensland restaurants are still open

A spokesperson for the Queensland arm of Carl's Jr told Yahoo Finance it is "unaffected" by the move into voluntary administration.

"All Queensland stores remain open and unaffected by the voluntary administration of Victorian-based CJ’s QSR Group Pty. Ltd., the Australian Master Licensee of Carl’s Jr. Restaurants, LLC, (CJ QSR).

"It’s business as usual for all Queensland restaurants which are in no way compromised by the financial position of CJ's QSR's, or its entry into Administration.

"Furthermore, the 450 staff employed in Queensland restaurants will all retain their jobs."

Get the latest Yahoo Finance news - follow us on Facebook, LinkedIn and Instagram.