FAT Brands Parent of Fatburger and Johnny Rockets Files Chapter 11 Bankruptcy
FAT Brands Inc., the Los Angeles-based parent company of restaurant chains including Fatburger, Johnny Rockets, Round Table Pizza, and Fazoli’s, has officially filed for Chapter 11 bankruptcy protection in the U.S. Bankruptcy Court for the Southern District of Texas. The filing, which includes affiliates such as Twin Hospitality, is a strategic move intended to restructure over $1 billion in debt accumulated during the company’s aggressive acquisition spree between 2020 and 2022.
The decision follows significant financial pressure stemming from the company’s “whole business securitization” debt structure. According to court filings, this complex financing model effectively restricted the company’s access to its own cash flow, leaving it with insufficient liquidity to cover operating costs and creating a scenario described by the Chief Restructuring Officer as “starving the business.” Additionally, the company has faced substantial legal expenses defending against a federal investigation into CEO Andy Wiederhorn and the company’s lending practices, although those charges were dropped in July 2025.
Despite the bankruptcy proceedings, FAT Brands maintains that its portfolio of 18 concepts and more than 2,200 locations worldwide will continue to operate as usual. The company emphasized that the filing is not a liquidation but a reorganization effort designed to deleverage its balance sheet. CEO Andy Wiederhorn stated that the Chapter 11 process will provide the opportunity to strengthen the capital structure and support the brands, citing the portfolio’s “tremendous resilience” in a challenging economic environment.
The restructuring plan aims to address approximately $1.3 billion to $1.45 billion in debt obligations that creditors had recently demanded be paid. While the company negotiates with bondholders, its stock is expected to continue trading on the NASDAQ, likely appending a “Q” suffix to its ticker symbol to indicate its bankruptcy status. This filing marks a significant pivot for the franchisor, which had previously attempted to alleviate its debt burden through the spin-off of its Twin Peaks and Smokey Bones brands.
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