CKE spokeswoman Suzi Brown wouldn't disclose the name of thebuyer of the Carl's Jr. stores, but says the deal will close by theend of the year. On Thursday, the company reported a $13.9-millionloss for the second quarter and added it will likely lose between$14 million and $19 million in its current fiscal year. Just a fewmonths ago, CKE officials said they were expecting a profit ofabout $10 million.

The restaurant sales are unlikely to effect any leases involvingthe Carl's Jr. or Taco Bueno chains, but CKE is already trying torestructure terms of many of its bank loans. The loans require thatCKE apply proceeds from the sales toward its debt.

Brown says CKE currently has about $235 million in bank debt butthat much of it will be paid off from proceeds of its recentrestaurant transactions. The outstanding balance should be wipedout if the company's plan to find a buyer for 250 more of itsHardee's stores proves successful, she adds.