**FAT Brands and Twin Hospitality File for Chapter 11 Bankruptcy Protection**
FAT Brands Inc., the Los Angeles-based restaurant franchising company behind well-known brands like Fatburger, Johnny Rockets and Round Table Pizza, has voluntarily filed for Chapter 11 bankruptcy protection in the U.S. Bankruptcy Court for the Southern District of Texas. The filing follows rising pressure from creditors demanding repayment of approximately $1.3 billion in loans, according to reports from Restaurant Dive.
Dallas-based Twin Hospitality, an affiliated entity that was spun off from FAT Brands last year, has also filed for bankruptcy. Both companies cited the need to deleverage their balance sheets and support the ongoing growth of their restaurant brands. The filings are intended to maximize stakeholder value and create a path for long-term financial health.
FAT Brands’ bankruptcy filing pointed to the growing liabilities and liquidity issues facing both it and Twin Hospitality. After exploring various strategic alternatives, including restructuring options, the company concluded that a Chapter 11 filing was the most viable course of action to protect its interests and those of its stakeholders, as noted by Nation’s Restaurant News.
Despite the bankruptcy process, FAT Brands emphasized that its portfolio of 18 restaurant concepts, representing more than 2,200 locations globally, will continue to operate without interruption. Additionally, the company maintains a robust pipeline of roughly 900 franchise commitments expected to open within the next five to seven years.
Bankruptcy court documents and further information regarding the claims process for FAT Brands and Twin Hospitality are being administered through Omni Agent Solutions, Inc.
