Popular American burger chain Carl's Jr has placed its Australian outlets into voluntary administration, affecting 49 of its stores.
Many of its stores across the country closed on Monday after KPMG announced that David Hardy, George George and Emily Szechs would be appointed administrators.
Hundreds of jobs are expected to be affected across the Australian franchise, which is primarily located in regional areas of NSW, Queensland and Victoria.
CJ Group is the master licensee, which independently owns and operates 24 restaurants, while the remaining 25 outlets are owned and operated by third-party sub-licensees.
David Hardy, partner at KPMG Australia's restructuring services, said in a statement that the initial focus would be on “stabilising” the group's operations.
“We will undertake an immediate sale process for our existing store network and operations,” he said.
“We will work with all stakeholders, including employees, suppliers and landlords, to maximise outcomes for all parties.”
Stakeholders are expected to be contacted within the next few days and a creditors' meeting is scheduled for August 7.
CJ Group expects only four stores to remain open, while 20 stores will close immediately.
The remaining 25 restaurants operated by sublicensees will reportedly experience minimal changes as they transition to a direct licensing relationship with CKE Restaurants Holdings Inc.
The management policies of Australian stores do not affect overseas stores.
The global group operates in more than 30 countries.
Carl's Jr has laid out bold plans for its entry into the Australian market, with the company set to open 300 restaurants in the country from 2016.
The first store opened in Bateau Bay on the NSW central coast.
But after positioning itself as a high-end fast-food burger restaurant with higher prices than its competitors, it failed to anticipate that takeout spending would decline amid the rising cost of living crisis.
