FAT Brands Inc., known for its diverse portfolio of restaurant concepts, has initiated voluntary chapter 11 bankruptcy proceedings in the U.S. Bankruptcy Court for the Southern District of Texas. This strategic move is aimed at restructuring the company’s balance sheet to alleviate debt, enhance stakeholder value, and foster growth opportunities for its well-known brands.
With a presence of over 2,200 locations globally, FAT Brands operates notable names such as Fatburger, Johnny Rockets, and Round Table Pizza. The company has reassured customers that operations at its restaurants will continue normally during the chapter 11 process, ensuring that diners can still enjoy their favorite meals. Importantly, trading of the company’s shares on NASDAQ will persist, albeit with a “Q” suffix signifying the bankruptcy status.
CEO Andy Wiederhorn expressed confidence in the company’s long-term viability, highlighting the resilience of its brand portfolio amidst challenging market conditions. He explained that the chapter 11 process will help to reinforce FAT Brands’ capital structure while prioritizing the interests of its stakeholders, franchise partners, and the over 45,000 employees supporting its restaurant concepts.
As the company navigates through these proceedings, FAT Brands aims to engage with stakeholders to develop a plan that maximizes value and ensures the continued success of its diverse offerings. With legal guidance from Latham & Watkins LLP and advisory support from GLC Advisors & Co. and Huron Consulting Services LLC, the company is poised to undertake necessary actions to stabilize and strengthen its business during this transition.
FAT Brands is a prominent player in the global food market, known for acquiring, marketing, and developing fast-casual and casual dining restaurant concepts worldwide. Its extensive brand portfolio includes notable franchises such as Marble Slab Creamery, Fazoli’s, and Twin Peaks, showcasing the company’s commitment to providing quality dining experiences to a wide array of customers.
Overall, while FAT Brands faces significant challenges, its proactive approach in restructuring presents an opportunity for a renewed focus on long-term profitability and growth, which may ultimately benefit its consumers, employees, and investors.