Iconic sports bar, BBQ chain owner files Chapter 11 | Official Website of Louis Velazquez, entrepreneur, finance guy and tech innovator

FAT Brands CEO Andy Wiederhorn made it clear on Jan. 12 at the ICR conference in Orlando that his company might end up filing for Chapter 11 bankruptcy.

“We’ve been talking about restructuring this debt for 18 months to two years with our note holders,” Wiederhorn said, according to Nation’s Restaurant News. “It has not been a very constructive negotiation…We’re looking at avenues to lower the debt and make it practical. I wish I could say that this would go quickly and get resolved, but it may take a couple of rounds.”

Those comments came after FAT Brands warned that a problem with its key lenders could result in a Chapter 11 bankruptcy filing. The company shared the details of its latest financial problem in a 10-K filing with the SEC.

In practical 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 principal amount outstanding under the FB Resid Notes is $158.9 million, or $110 million net of FB Resid Note,” it shared.

FAT Brands did not have that much cash on hand, which made a Chapter 11 bankruptcy a real risk, the company warned.

Securitized restaurant debt is fragile in downturns because weaker store sales quickly strain the cash flows backing those bonds.

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

FAT Brands files Chapter 11 bankruptcy

FAT Brands has filed for voluntary Chapter 11 bankruptcy proceedings in the U.S. Bankruptcy Court for the Southern District of Texas. FAT Brands plans to use the filings to deleverage the balance sheet, maximize value for its stakeholders, and support continued growth of its brands.

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FAT Brands’ portfolio of 18 restaurant concepts encompasses more than 2,200 locations worldwide. Iconic brands such as Fatburger, Johnny Rockets, and Round Table Pizza, among others, are expected to operate as usual during the Chapter 11 process and will continue to provide their signature dining experiences.

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

FAT Brand Chapter 11 quick facts

FAT Brands Inc., the parent of more than 18 restaurant concepts including Fatburger, Johnny Rockets, and Round Table Pizza, filed for voluntary Chapter 11 bankruptcy protection in the U.S. Bankruptcy Court for the Southern District of Texas on January 26, 2026.
The company said the Chapter 11 process will let it deleverage its balance sheet, bolster its capital structure, and maximize value for stakeholders while continuing to operate its portfolio of more than 2,200 locations worldwide.
FAT Brands plans to keep its restaurants open during restructuring, with its Nasdaq-traded securities expected to trade with a “Q” suffix to denote bankruptcy proceedings.
In its bankruptcy filing, the company reported assets and liabilities both in the range of $1 billion to $10 billion, a common broad bracket in Chapter 11 disclosures.
FAT Brands has been overwhelmed by debt tied to securitized borrowings; its total debt was estimated around $1.5 billion to $1.58 billion due to leveraged acquisitions and financing strategies.
Prior SEC filings noted the company carried approximately $1.6 billion in debt, a heavy burden that contributed to its Chapter 11 move. Sources: PacerMonitor, FAT Brands press release

Twin Peaks is a sports bar concept.

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FAT Brands insists it’s financially viable

Wiederhorn, who was indicted by the U.S. government on money laundering charges, but had those charges dismissed, explained during his remarks that “the debt restructuring process has been complicated by the involvement of approximately 25 different investors or note holders, who have been unable to agree on a single solution,” according to NRN.

The company, he claimed, despite the $1.26 billion in debt, was “in good shape” with $60 million of free cash flow.

“We just need the debt stack restructured to be affordable,” Wiederhorn said. “I think that’s a conclusion our note holders need to come to sooner rather than later.”

FAT Brands has a deep portfolio

Fatburger: Signature burger chain and founding brand of FAT Brands
Johnny Rockets: Classic diner‑style burger and shake restaurant
Elevation Burger: Organic/better‑burger concept
Fazoli’s: Italian quick‑service restaurant chain
Round Table Pizza: Pizza chain with traditional and delivery formats
Great American Cookies: Cookie and sweets franchise
Marble Slab Creamery: Premium hand‑mixed ice cream franchise
Hot Dog on a Stick: Fast‑casual hot dog and lemonade brand
Pretzelmaker: Pretzel and snack brand (often co‑located with other concepts)
Buffalo’s Cafe & Express: Wings and American café concept
Hurricane Grill & Wings: A wing and grill chain
Native Grill & Wings: Regional wing and grill brand (added in 2021)
Twin Peaks: A sports bar/lodge, casual dining, and bar chain
Smokey Bones Bar & Fire Grill: Barbecue/grill casual dining brand (added in 2023)
Yalla Mediterranean: Mediterranean fast-casual brand
Ponderosa Steakhouse & Bonanza Steakhouse: Family‑friendly steakhouse chains Source: FAT Brands website