CKE spokeswoman Suzi Brown wouldn't disclose the name of the buyer of the Carl's Jr. stores, but says the deal will close by the end of the year. On Thursday, the company reported a $13.9-million loss for the second quarter and added it will likely lose between $14 million and $19 million in its current fiscal year. Just a few months ago, CKE officials said they were expecting a profit of about $10 million.
The restaurant sales are unlikely to effect any leases involving the Carl's Jr. or Taco Bueno chains, but CKE is already trying to restructure terms of many of its bank loans. The loans require that CKE apply proceeds from the sales toward its debt.
Brown says CKE currently has about $235 million in bank debt but that much of it will be paid off from proceeds of its recent restaurant transactions. The outstanding balance should be wiped out if the company's plan to find a buyer for 250 more of its Hardee's stores proves successful, she adds.
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