CKE Raises $46.9 Million From Sales of Restaurants
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CKE Restaurants Inc. said Thursday that it raised $46.9 million in after-tax gains from the sales of 45 Hardee’s restaurants and 65 Carl’s Jr. restaurants in four transactions as part of its effort to reduce debts and shift more company-owned stores to franchisees.
The Anaheim fast-food restaurant operator said it sold the Hardee’s shops for a total $15.3 million and the Carl’s eateries for $59.1 million before taxes and other costs.
CKE didn’t identify the buyers. It said the biggest deal--the $53.3-million sale of 48 Carl’s stores in Los Angeles--was with a franchisee who bought 12 L.A.-area stores last month.
CKE said that it used the proceeds from the sales to reduce debt under its senior credit facility--a series of loans--to $229 million as of Tuesday from $400 million last December. The company said it is $8 million short of its goal to reduce $90 million of debt by Dec. 20.
The company, which was facing a Dec. 20 deadline to pay $60 million to its banks, said it is not in default of its loans. An additional $60 million is due in late January.
CKE said it is “diligently pursuing other prospective refranchising and asset sale transactions” to reduce debt further.
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