Iconic sports bar, BBQ chain owner files Chapter 11

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FAT Brands CEO Andy Wiederhorn made it wide connected Jan. 12 astatine the ICR league successful Orlando that his institution mightiness extremity up filing for Chapter 11 bankruptcy.

“We’ve been talking astir restructuring this indebtedness for 18 months to 2 years with our enactment holders,” Wiederhorn said, according to Nation’s Restaurant News. “It has not been a precise constructive negotiation…We’re looking astatine avenues to little the indebtedness and marque it practical. I privation I could accidental that this would spell rapidly and get resolved, but it whitethorn instrumentality a mates of rounds.”

Those comments came aft FAT Brands warned that a occupation with its cardinal lenders could effect successful a Chapter 11 bankruptcy filing. The institution shared the details of its latest fiscal occupation successful a 10-K filing with the SEC.

In applicable terms, the filing said that UMB delivered to Fat Brands a “Notice of Event of Default” with respect to the FB Resid Indenture, stating that an “Event of Default had occurred pursuant to Section 9.2 of the FB Resid Indenture. The aggregate main magnitude outstanding nether the FB Resid Notes is $158.9 million, oregon $110 cardinal nett of FB Resid Note,” it shared.

FAT Brands did not person that overmuch currency connected hand, which made a Chapter 11 bankruptcy a existent risk, the institution warned.

Securitized edifice indebtedness is fragile successful downturns due to the fact that weaker store income rapidly strain the currency flows backing those bonds.

That hazard has turned into reality, and the company, which operates Twin Peaks, Smokey Bones, Johnny Rockets, and galore different chains, has filed for Chapter 11 bankruptcy.

FAT Brands has filed for voluntary Chapter 11 bankruptcy proceedings successful the U.S. Bankruptcy Court for the Southern District of Texas. FAT Brands plans to usage the filings to deleverage the equilibrium sheet, maximize worth for its stakeholders, and enactment continued maturation of its brands.

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FAT Brands’ portfolio of 18 edifice concepts encompasses much than 2,200 locations worldwide. Iconic brands specified arsenic Fatburger, Johnny Rockets, and Round Table Pizza, among others, are expected to run arsenic accustomed during the Chapter 11 process and volition proceed to supply their signature eating experiences.

Trading of FAT Brands’ securities connected NASDAQ is expected to proceed with a “Q” suffix during this period.

FAT Brands Inc., the genitor of much than 18 edifice concepts including Fatburger, Johnny Rockets, and Round Table Pizza, filed for voluntary Chapter 11 bankruptcy protection successful the U.S. Bankruptcy Court for the Southern District of Texas connected January 26, 2026.
The institution said the Chapter 11 process volition fto it deleverage its equilibrium sheet, bolster its superior structure, and maximize worth for stakeholders portion continuing to run its portfolio of much than 2,200 locations worldwide.
FAT Brands plans to support its restaurants unfastened during restructuring, with its Nasdaq-traded securities expected to commercialized with a “Q” suffix to denote bankruptcy proceedings.
In its bankruptcy filing, the institution reported assets and liabilities some successful the scope of $1 cardinal to $10 billion, a communal wide bracket successful Chapter 11 disclosures.
FAT Brands has been overwhelmed by indebtedness tied to securitized borrowings; its full indebtedness was estimated astir $1.5 cardinal to $1.58 billion owed to leveraged acquisitions and financing strategies.
Prior SEC filings noted the institution carried approximately $1.6 cardinal successful debt, a dense load that contributed to its Chapter 11 move.
Sources: PacerMonitor, FAT Brands property release