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Restaurant franchisor FAT Brands, owner of popular fast-casual chains like Fatburger, Johnny Rockets and Twin Peaks, has filed for bankruptcy amid mounting debt of about $1.3 billion.
The California-based company, which oversees 18 restaurant brands with more than 2,200 locations worldwide, filed for bankruptcy in Texas on Monday.
Its subsidiary, Texas-based Twin Hospitality Group, which spun off from FAT Brands in 2025 primarily to operate the Twin Peaks sports bar chain, has also filed for bankruptcy. As of 2026, the company will operate 114 locations in the US and Mexico.
The filing came just months after the company announced plans to expand its operations fast food chain Fatburger, which aims to add at least 40 new locations in Florida alone in the coming years.
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Customers line up to order at a Fatburger outlet on Saturday, January 5, 2013. (Asim Hafeez/Bloomberg via Getty Images/Getty Images)
“Market conditions have been difficult and largely unforeseen in recent years,” said Erin Mandzik, senior director of communications. “While our brands remain strong, these market conditions have created challenges in restructuring the debt we incurred to acquire and strategically grow the FAT Brands portfolio. We have undertaken the Chapter 11 process to assist in restructuring that debt.”
“FAT Brands intends to use the filings to reduce debt on its balance sheet, maximize value for its stakeholders and support the continued growth of its brands,” the company added.
Shares of FAT Brands plummeted 45% immediately after the announcement.
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The Twin Peaks restaurant is seen on May 18, 2015 in Waco, Texas. (Erich Schlegel/Getty Images/Getty Images)
The company currently owns 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% |
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FAT Brands reportedly missed payments sometime before mid-November last year, and Reuters noted that the company only had $2.1 million in cash on hand at the time of the filing.
The outlet added that the company used some of its remaining cash to ensure that $400,000 in recently issued paychecks wouldn’t bounce as employees tried to cash them.
Employees take orders at Johnny Rockets, owned by FAT Brands. (Jeffrey Greenberg/Universal Images Group via Getty Images/Getty Images)
The franchisor emphasized that its signature brands such as Fatburger, Johnny Rockets and Round Table Pizza are expected to continue to operate normally during the Chapter 11 process.
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| TWNP | TWIN HOSPITALITY GROUP INC | 0.35 | -0.18 |
-34.06% |
The announcement comes after the company was impacted by the Los Angeles indictment against CEO Andrew Wiederhorn. In 2024, the Justice Department accused Wiederhorn of defrauding investors of $47 million through shareholder loans. He faced multiple charges, including wire fraud and tax evasion, but the case was ultimately dismissed in 2025 following the dismissal of the federal prosecutor.
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