Most locations remain open for now, but court filings show that 10 restaurants are expected to close after buyers could not be found. The remaining 49 locations are being marketed to prospective franchise operators as part of the company's restructuring effort.
Quick Facts
- Franchisee: Sun Gir Inc. and affiliated entities
- Bankruptcy filing: April 2, 2026
- Restaurants affected: 59
- Expected closures: 10
- Locations for sale: 49
- Geographic footprint: 52 in Southern California, 7 in Northern California
- Current status: Most locations remain open
- Brand impact: Carl's Jr. says the filing is limited to this franchise operator
What's Happening
Sun Gir Inc., a La Palma-based Carl's Jr. franchisee, filed for Chapter 11 bankruptcy protection on April 2, 2026.
According to court filings, the company operates 59 Carl's Jr. restaurants throughout California. After failing to secure buyers for 10 underperforming locations, the company moved forward with plans to close those restaurants. The remaining 49 locations are being actively marketed for sale as part of the restructuring process.
Under Sun Gir's restructuring plan, all 59 restaurants are either expected to close or be transferred to new ownership. The proposed outcome remains subject to bankruptcy court approval.
Is Your Location Affected?
A complete public list of the affected restaurants has not been released.
Sun Gir's portfolio includes restaurants across both Southern and Northern California, though the company has not identified which locations are expected to close and which may ultimately be sold.
As of June 11, most locations appeared to remain open while bankruptcy proceedings continue.
Customers concerned about a nearby restaurant can check the Carl's Jr. store locator for updated operating information and hours.
Affected Areas
Sun Gir operates 52 Carl's Jr. restaurants in Southern California and seven in Northern California. While the company has not released a complete list of affected stores, the bankruptcy filing covers locations across both regions.
Most restaurants remain open while the sale and restructuring process moves through court.
Why This Happened
Court documents show the franchisee was generating more than $6 million in monthly revenue while also reporting losses exceeding $600,000 per month.
According to reporting from the Los Angeles Times, employees cited operational challenges including understaffing, workplace injuries, and difficult customer interactions.
Court filings also indicate that rising labor costs played a role in the company's financial difficulties. Sun Gir's leadership specifically referenced California's $20-per-hour fast-food minimum wage as one factor contributing to the pressure on store operations.
Will Carl's Jr. Disappear From Your Area?
Unlikely.
Carl's Jr. said the bankruptcy filing is specific to this franchise operator and does not affect the broader brand's operations.
According to Carl's Jr.'s 2025 Franchise Disclosure Document, the chain operated 588 locations in California, making it the company's largest state market. Sun Gir's 59 restaurants represent a significant portion of that footprint, but far from the entirety of the brand's presence in the state.
Because the 49 remaining restaurants are being marketed to new franchise operators, many locations could continue operating as Carl's Jr. restaurants under new ownership.
For customers, any changes may be limited to management transitions, staffing adjustments, or modified operating hours.
What Happens Next?
The bankruptcy court will determine whether Sun Gir's proposed restructuring plan can move forward.
That process includes approval of lease rejections, potential restaurant closures, and the transfer of locations to new operators.
Customers at affected restaurants may see gradual changes over the coming months as ownership transitions are completed. Any closures are expected to occur on a rolling basis rather than all at once.
FAQ
Are all 59 affected Carl's Jr. restaurants closing?
No.
Current court filings indicate that 10 locations are expected to close after buyers could not be found. The remaining 49 locations are being marketed for sale and may continue operating as Carl's Jr. restaurants under new ownership.
How can I find out if my local Carl's Jr. is affected?
Sun Gir has not released a complete public list of affected addresses.
Customers can monitor the Carl's Jr. store locator for updates on operating hours and store status. A more detailed list may become public as bankruptcy court proceedings continue.
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