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Restaurant company FAT Brands, which owns popular fast-casual chains including 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 Chapter 11 bankruptcy in Texas on Monday.
Its subsidiary, Texas-based Twin Hospitality Group, which spun off from FAT Brands in 2025 to operate the Twin Peaks sports bar chain, also filed for Chapter 11 bankruptcy. As of 2026, the company operates 114 locations across the US and Mexico.
The filing comes a few months after the company announced plans to expand its Fatburger fast food chain, aiming to add at least 40 new locations in Florida alone over the next few years.
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Customers wait in line to order at a Fatburger stand on Saturday, Jan. 5, 2013. (Asim Hafeez/Bloomberg via Getty Images/Getty Images)
FAT Brands confirmed to FOX Business on Tuesday that its company has been hit by the usual storms in the restaurant industry, including inflation and declining customer demand for casual dining.
“Market conditions over the past few years have been difficult and unpredictable,” said Erin Mandzik, senior director of communications. “While our products remain strong, these market conditions created challenges in restructuring the debt we took on to acquire and systematically grow the FAT Brands portfolio. We filed for Chapter 11 to help restructure that debt.”
“FAT Brands plans to use the filings to leverage the balance sheet, increase shareholder value, and support the continued growth of its brands,” the company added.
FAT Brands shares fell 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)
The company currently has 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 & Yase, Native Burger & Mediterranean, Native Grill Burger & Bonanza Steakhouses
| A ticker | Security | Finally | Change | Change % |
|---|---|---|---|---|
| FAT | Company FAT BRANDS INC | 0.26 | -0.13 |
-33.67% |
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FAT Brands is said to have missed payments sometime before mid-November last year, and Reuters noted that the company had only $2.1 million in cash at the time of filing.
The company added that the company is using some of its remaining funds to ensure that the $400,000 in newly issued funds will not explode when employees try to withdraw them.
Order takers at Johnny Rockets, owned by FAT Brands. (Jeffrey Greenberg/Universal Images Group via Getty Images/Getty Images)
The retailer emphasized that its signature brands such as Fatburger, Johnny Rockets and Round Table Pizza are expected to continue operating as normal during the Chapter 11 process.
| A ticker | Security | Finally | Change | Change % |
|---|---|---|---|---|
| TWNP | Company TWIN HOSPITALITY GROUP INC | 0.35 | -0.18 |
-34.06% |
The announcement comes after the company was hit by the Los Angeles lawsuit of CEO Andrew Wiederhorn. In 2024, the Department of Justice accused Wiederhorn of defrauding investors of $47 million in shareholder loans. He faced numerous charges, including fraud and tax evasion, but the case was dismissed in 2025 following the dismissal of the federal prosecutor.
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FOX Business reached out to FAT Brands for more information.
