FAT Brands files voluntary Chapter 11 petitions to reduce debt load

FAT Brands has filed voluntary Chapter 11 petitions successful the US Bankruptcy Court for the Southern District of Texas, seeking to trim indebtedness and set its superior structure.

In a institution statement, the edifice franchising radical said it intends to usage the Chapter 11 process to “deleverage the equilibrium sheet, maximise worth for its stakeholders and enactment continued maturation of its brands”.

The filing comes aft FAT Brands missed involvement payments that were owed successful October connected portions of its $1.2bn debt, according to a Bloomberg report.

Court documents amusement FAT Brands listed assets ranging from $1bn to $10bn, with liabilities successful the aforesaid range.

FAT Brands operates arsenic a planetary franchising institution that acquires, markets and develops edifice concepts crossed assorted eating segments.

Its portfolio includes 18 edifice brands with much than 2,200 locations worldwide.

The company’s cardinal edifice brands, including Fatburger, Johnny Rockets and Round Table Pizza, are expected to proceed operating during the Chapter 11 process. It besides said trading of its securities connected NASDAQ is expected to proceed with a “Q” suffix portion the bankruptcy proceedings are ongoing.

FAT Brands CEO Andy Wiederhorn said: “The section 11 process volition supply america with the accidental to fortify our superior operation to enactment our concepts and guarantee they stay astatine the forefront of their sectors.

“We program to usage this process to link with cardinal stakeholders astir a value-maximising program and volition enactment prudently to stay steadfast successful upholding and protecting stakeholder interests."

Wiederhorn returned arsenic CEO successful September 2025.

He antecedently resigned successful May 2023 amid a national probe into allegations of fraud and taxation evasion. However, successful July 2025, the US Attorney for the Central District of California moved to disregard each charges against Wiederhorn.

"FAT Brands files voluntary Chapter 11 petitions to trim indebtedness load" was primitively created and published by Verdict Food Service, a GlobalData owned brand.

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