CKE Restaurants Fights Rumors of Bankruptcy
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CKE Restaurants Inc., the parent company of Carl’s Jr. restaurants and other chains, may be having a rocky year, but company Chairman William P. Foley wants to make one thing clear: The company is not going bankrupt.
Speculation about a bankruptcy began popping up in Internet chat rooms to such a widespread degree recently that Foley, in a conference call with industry analysts this month, felt he needed to set the record straight.
“Frankly, I’m surprised at such speculation,” he said.
CKE spokeswoman Suzi Brown said Foley believed he needed to put the rumors to rest “before anybody got the wrong idea.”
In addition to Carl’s Jr., Anaheim’s CKE operates the Hardee’s and Taco Bueno chains. The company has warned for five straight quarters that profit would fall below forecasts, as CKE struggled with sluggish sales and the costs of remodeling Hardee’s restaurants. The company’s stock has lost nearly 80% of its value this year.
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