FAT Brands has filed voluntary Chapter 11 petitions in the US Bankruptcy Court for the Southern District of Texas, seeking to reduce debt and adjust its capital structure.
In a company statement, the restaurant franchising group said it intends to use the Chapter 11 process to “deleverage the balance sheet, maximise value for its stakeholders and support continued growth of its brands”.
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The filing comes after FAT Brands missed interest payments that were due in October on portions of its $1.2bn debt, according to a Bloomberg report.
Court documents show FAT Brands listed assets ranging from $1bn to $10bn, with liabilities in the same range.
FAT Brands operates as a global franchising company that acquires, markets and develops restaurant concepts across various dining segments.
Its portfolio includes 18 restaurant brands with more than 2,200 locations worldwide.
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By GlobalDataThe company’s key restaurant brands, including Fatburger, Johnny Rockets and Round Table Pizza, are expected to continue operating during the Chapter 11 process. It also said trading of its securities on NASDAQ is expected to continue with a “Q” suffix while the bankruptcy proceedings are ongoing.
FAT Brands CEO Andy Wiederhorn said: “The chapter 11 process will provide us with the opportunity to strengthen our capital structure to support our concepts and ensure they remain at the forefront of their sectors.
“We plan to use this process to connect with key stakeholders around a value-maximising plan and will act prudently to remain steadfast in upholding and protecting stakeholder interests.”
Wiederhorn returned as CEO in September 2025.
He previously resigned in May 2023 amid a federal investigation into allegations of fraud and tax evasion. However, in July 2025, the US Attorney for the Central District of California moved to dismiss all charges against Wiederhorn.
