**FAT Brands and Twin Hospitality File for Chapter 11 Bankruptcy**
FAT Brands Inc., a Los Angeles-based restaurant franchising company, has voluntarily filed for Chapter 11 bankruptcy protection in the U.S. Bankruptcy Court for the Southern District of Texas. This move comes as the company faces pressure from creditors to repay $1.3 billion in loans, according to industry sources.
Twin Hospitality, a Dallas-based affiliate that was spun off from FAT Brands last year, has also filed for bankruptcy protection. Both companies have stated their intention to use the filings to reduce debt, enhance stakeholder value, and continue strategic growth initiatives.
The filings cite escalating financial liabilities and liquidity challenges as the primary reasons for seeking bankruptcy protection. FAT Brands noted that after exploring strategic alternatives, including potential restructuring options, it determined that Chapter 11 was the most viable path to maximize the value for its stakeholders.
FAT Brands operates a global portfolio of 18 restaurant concepts, including well-known names such as Fatburger, Johnny Rockets, and Round Table Pizza. The company assured that its over 2,200 locations worldwide will continue normal operations during the restructuring process. Additionally, FAT Brands has a robust development pipeline, with approximately 900 new locations expected to open over the next five to seven years.
Further information regarding the bankruptcy process and claims can be accessed through a website maintained by Omni Agent Solutions, Inc., the proposed claims and noticing agent for both FAT Brands and Twin Hospitality.
