Restaurant franchisor FAT Brands, which owns popular fast-food chains such as 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 primarily to operate the Twin Peaks sports bar chain, also filed for Chapter 11 bankruptcy. As of 2026, the company operates 114 locations in the United States and Mexico.
The filing came just months after the company announced plans to expand its fast food chain Fatburger, aiming to add at least 40 new locations in Florida alone over the next few years.
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Customers queue to order at a Fatburger outlet on Saturday January 5, 2013. (Asim Hafeez/Bloomberg via Getty Images / Getty Images)
FAT Brands confirmed to FOX Business on Tuesday that its company was hit by common headwinds during the 2000s. restaurant industryincluding inflation and declining customer demand for casual dining.
“Market conditions over the past several years have been challenging and largely unanticipated,” said Erin Mandzik, senior director of communications. “While our brands remain strong, these market conditions have created challenges in restructuring the debt we incurred to strategically acquire and grow the FAT Brands portfolio. We have undertaken the Chapter 11 process to help restructure this debt.”
“FAT Brands plans to use these materials to reduce balance sheet leverage, maximize value for its stakeholders and support the continued growth of its brands,” the company added.
FAT Brands shares fell 45% immediately following the announcement.
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The Twin Peaks restaurant is seen on May 18, 2015 in Waco, Texas. (Erich Schlegel/Getty Images/Getty Images)
The company currently owns 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, Native Grill & Wings, Yalla Mediterranean and Ponderosa and Bonanza Steakhouses.
Teleprinter Security Last Change Change % FAT FAT BRANDS, INC. 0.26 -0.13 -33.67% HOOTERS CEO REVEALS MOST CUSTOMERS WERE SERVED THE WRONG WING SAUCE FOR 20 YEARS
FAT Brands reportedly missed payments before mid-November last year, and Reuters noted that the company had just $2.1 million in cash at the time of the filing.
The outlet added that the company was using some of its remaining funds to ensure that the $400,000 in recently issued paychecks would not bounce when employees tried to cash them.
Employees taking orders at Johnny Rockets, owned by FAT Brands. (Jeffrey Greenberg/Universal Images Group via Getty Images / Getty Images)
The franchisor stressed that its iconic brands such as Fatburger, Johnny Rockets and Round Table Pizza are expected to continue operating as usual during the lockdown period. Chapter 11 Process.
Teleprinter Security Last Change Change % Set TWIN HOSPITALITY GROUP INC. 0.35 -0.18 -34.06% The announcement comes after the company was hit by the indictment of its CEO in Los Angeles. Andrew Wiederhorn. In 2024, the Justice Department charged Wiederhorn with defrauding investors of $47 million through shareholder loans. He faced multiple charges, including wire fraud and tax evasion, but the case was ultimately dismissed in 2025 following the firing of the federal prosecutor.
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FOX Business has reached out to FAT Brands for more information.