FAT Brands Seeks Bankruptcy Protection Amidst $1.3 Billion Debt Crisis
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FAT Brands, the restaurant franchiser known for its popular fast-casual chains such as Fatburger, Johnny Rockets, and Twin Peaks, has recently filed for bankruptcy, grappling with a staggering debt of approximately $1.3 billion. This California-based company, which manages 18 restaurant brands and boasts over 2,200 locations worldwide, initiated Chapter 11 bankruptcy proceedings in Texas on Monday.
In a related move, Twin Hospitality Group, a subsidiary based in Texas that separated from FAT Brands in 2025 to primarily operate the Twin Peaks sports bar chain, has also filed for Chapter 11 bankruptcy. As of 2026, Twin Hospitality operates 114 locations across the U.S. and Mexico.
This bankruptcy filing comes just months after FAT Brands announced ambitious plans to expand its Fatburger chain, with intentions to open at least 40 new locations in Florida over the next few years.
FAST-FOOD BURGER CHAIN TO OPEN DOZENS OF NEW LOCATIONS IN SOUTHERN STATE
Customers wait in line to order at a Fatburger outlet on Saturday, Jan. 5, 2013. (Asim Hafeez/Bloomberg via Getty Images / Getty Images)
FAT Brands confirmed to FOX Business that it has been affected by common challenges in the restaurant industry, including inflation and a decline in customer demand for casual dining. Erin Mandzik, a senior director of communications, stated, “Market conditions over the past few years have been difficult and largely unforeseen. While our brands remain strong, these market conditions have created challenges in restructuring the debt we took on to acquire and strategically grow the FAT Brands portfolio. We have undertaken the Chapter 11 process to assist in restructuring that debt.”
The company aims to utilize the bankruptcy filings to reduce its debt, maximize stakeholder value, and support the ongoing growth of its brands. Following the announcement, shares of FAT Brands dropped by 45%.
POPULAR CHICKEN FINGER CHAIN QUIETLY LAUNCHES MASSIVE EXPANSION ACROSS AMERICA
The Twin Peaks restaurant is seen on May 18, 2015, in Waco, Texas. (Erich Schlegel/Getty Images / Getty Images)
Currently, FAT Brands oversees a diverse portfolio of 18 restaurant brands, including Round Table Pizza, Fatburger, Marble Slab Creamery, Johnny Rockets, Fazoli’s, Twin Peaks, Great American Cookies, Smokey Bones, Hot Dog on a Stick, Buffalo’s Cafe & Express, Hurricane Grill & Wings, Pretzelmaker, Elevation Burger, Native Grill & Wings, Yalla Mediterranean, and Ponderosa and Bonanza Steakhouses.
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| FAT | FAT BRANDS INC | 0.26 | -0.13 | -33.67% |
HOOTERS C.E.O. REVEALS MOST CUSTOMERS WERE SERVED THE WRONG WING SAUCE FOR 20 YEARS
Reports indicate that FAT Brands missed payments prior to mid-November of last year, with only $2.1 million in cash available at the time of the filing. The company utilized some of its remaining funds to ensure that $400,000 in recently issued paychecks would not bounce when employees attempted to cash them.
Employees taking orders at Johnny Rockets, owned by FAT Brands. (Jeffrey Greenberg/Universal Images Group via Getty Images / Getty Images)
Despite the bankruptcy proceedings, FAT Brands has assured that its flagship brands, including Fatburger, Johnny Rockets, and Round Table Pizza, will continue to operate as usual throughout the Chapter 11 process.
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| TWNP | TWIN HOSPITALITY GROUP INC | 0.35 | -0.18 | -34.06% |
The recent announcement follows the Los Angeles indictment of FAT Brands’ CEO, Andrew Wiederhorn. In 2024, the Department of Justice accused Wiederhorn of defrauding investors of $47 million through shareholder loans. Although he faced multiple charges, including wire fraud and tax evasion, the case was ultimately dismissed in 2025 after the federal prosecutor was fired.
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FOX Business has reached out to FAT Brands for further information.
Check out what’s clicking on FoxBusiness.com.
FAT Brands, the restaurant franchiser known for its popular fast-casual chains such as Fatburger, Johnny Rockets, and Twin Peaks, has recently filed for bankruptcy, grappling with a staggering debt of approximately $1.3 billion. This California-based company, which manages 18 restaurant brands and boasts over 2,200 locations worldwide, initiated Chapter 11 bankruptcy proceedings in Texas on Monday.
In a related move, Twin Hospitality Group, a subsidiary based in Texas that separated from FAT Brands in 2025 to primarily operate the Twin Peaks sports bar chain, has also filed for Chapter 11 bankruptcy. As of 2026, Twin Hospitality operates 114 locations across the U.S. and Mexico.
This bankruptcy filing comes just months after FAT Brands announced ambitious plans to expand its Fatburger chain, with intentions to open at least 40 new locations in Florida over the next few years.
FAST-FOOD BURGER CHAIN TO OPEN DOZENS OF NEW LOCATIONS IN SOUTHERN STATE
Customers wait in line to order at a Fatburger outlet on Saturday, Jan. 5, 2013. (Asim Hafeez/Bloomberg via Getty Images / Getty Images)
FAT Brands confirmed to FOX Business that it has been affected by common challenges in the restaurant industry, including inflation and a decline in customer demand for casual dining. Erin Mandzik, a senior director of communications, stated, “Market conditions over the past few years have been difficult and largely unforeseen. While our brands remain strong, these market conditions have created challenges in restructuring the debt we took on to acquire and strategically grow the FAT Brands portfolio. We have undertaken the Chapter 11 process to assist in restructuring that debt.”
The company aims to utilize the bankruptcy filings to reduce its debt, maximize stakeholder value, and support the ongoing growth of its brands. Following the announcement, shares of FAT Brands dropped by 45%.
POPULAR CHICKEN FINGER CHAIN QUIETLY LAUNCHES MASSIVE EXPANSION ACROSS AMERICA
The Twin Peaks restaurant is seen on May 18, 2015, in Waco, Texas. (Erich Schlegel/Getty Images / Getty Images)
Currently, FAT Brands oversees a diverse portfolio of 18 restaurant brands, including Round Table Pizza, Fatburger, Marble Slab Creamery, Johnny Rockets, Fazoli’s, Twin Peaks, Great American Cookies, Smokey Bones, Hot Dog on a Stick, Buffalo’s Cafe & Express, Hurricane Grill & Wings, Pretzelmaker, Elevation Burger, Native Grill & Wings, Yalla Mediterranean, and Ponderosa and Bonanza Steakhouses.
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| FAT | FAT BRANDS INC | 0.26 | -0.13 | -33.67% |
HOOTERS C.E.O. REVEALS MOST CUSTOMERS WERE SERVED THE WRONG WING SAUCE FOR 20 YEARS
Reports indicate that FAT Brands missed payments prior to mid-November of last year, with only $2.1 million in cash available at the time of the filing. The company utilized some of its remaining funds to ensure that $400,000 in recently issued paychecks would not bounce when employees attempted to cash them.
Employees taking orders at Johnny Rockets, owned by FAT Brands. (Jeffrey Greenberg/Universal Images Group via Getty Images / Getty Images)
Despite the bankruptcy proceedings, FAT Brands has assured that its flagship brands, including Fatburger, Johnny Rockets, and Round Table Pizza, will continue to operate as usual throughout the Chapter 11 process.
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| TWNP | TWIN HOSPITALITY GROUP INC | 0.35 | -0.18 | -34.06% |
The recent announcement follows the Los Angeles indictment of FAT Brands’ CEO, Andrew Wiederhorn. In 2024, the Department of Justice accused Wiederhorn of defrauding investors of $47 million through shareholder loans. Although he faced multiple charges, including wire fraud and tax evasion, the case was ultimately dismissed in 2025 after the federal prosecutor was fired.
GET FOX BUSINESS ON THE GO BY CLICKING HERE
FOX Business has reached out to FAT Brands for further information.
