Fat Brands Files Chapter 11 Bankruptcy After Attempting Massive Expansion

FAT Brands Inc., the parent company of restaurant chains including Fatburger, Twin Peaks, Johnny Rockets, and Round Table Pizza, filed for voluntary Chapter 11 bankruptcy protection in federal court in Texas on Monday, seeking to restructure roughly $1.3 billion in debt obligations.

FAT Brands’ portfolio includes 18 restaurant concepts spanning fast casual, quick-service and casual dining, with more than 2,300 locations worldwide, according to the company’s website. The filing came months after FAT Brands announced an expansion deal to add 40 Fatburger locations in Florida over the next decade. (RELATED: Beaten Like An Egg, Battered Like A Chicken Cutlet: Cracker Barrel Brings Back Two Favorites After Customer Backlash)

In a statement, CEO Andy Wiederhorn said the company is “well positioned for long-term profitability and growth” and that “the Chapter 11 process will provide us with the opportunity to strengthen our capital structure to support our concepts and ensure they remain at the forefront of their sectors.”

LAS VEGAS, NV – DECEMBER 10: (L-R) Model Crystal Taylor, Fifth Avenue Restaurant Group President Frank Bonanno, model Alex Garcia, Regional President of the Western Division of Caesars Entertainment Rick Mazer, model and television personality Holly Madison, model Molly Kaiser, Fifth Avenue Restaurant Group Executive Vice President Robb Bonanno and model Carla Avila cut a ribbon at Johnny Rockets at the Flamingo Las Vegas to celebrate the restaurant’s grand opening December 10, 2010 in Las Vegas, Nevada. (Photo by Ethan Miller/Getty Images for Caesars Entertainment)

The company’s bankruptcy follows a wave of similar filings from casual-dining chains, including Red Lobster and Hooters. A FAT Brands spokesperson said “market conditions over the past few years have been difficult and largely unforeseen” in a statement to Fox Business — a common refrain from restaurant brands struggling with inflationary pressures and declining customer traffic.

A key factor was FAT Brands’ default on its roughly $1.3 billion in whole business securitization debt. After the company missed required payments in October, its creditors declared the full amount due immediately. Creditors warned they could foreclose on the collateral — the restaurant brands themselves — if FAT didn’t file for bankruptcy protections.

FAT Brands reported having just $2.1 million in unrestricted cash at the time of filing. The company said it would use a portion of those funds to ensure roughly $400,000 in recently issued employee paychecks clear during the bankruptcy process.

The brand said its restaurants are expected to continue operating as usual throughout the bankruptcy proceedings, and its securities will continue trading on the NASDAQ with a “Q” suffix added to indicate the bankruptcy filing.

Twin Hospitality Group, a FAT Brands subsidiary that was spun off as a separate public company in 2025 to operate the Twin Peaks and Smokey Bones chains, also filed for Chapter 11 bankruptcy on Monday.