"FAT Brands the owner of multiple restaurant chains including Johnny Rockets, Fatburger and Twin Peaks has filed for bankruptcy amid debt of more than $1 billion. The franchiser filed for Chapter 11 on Monday in the U.S. Bankruptcy Court for the Southern District of Texas, according to Fox Business. FAT operates 18 restaurant brands with more than 2,200 locations. The company said it expects its restaurants to remain open as usual during the bankruptcy proceedings."
"Twin Peaks Hospitality Group, a subsidiary that was spun off last year to oversee the Twin Peaks sports bar chain, also filed for bankruptcy, according to a press release. The mountain-lodge-themed Hooters has 114 locations across the U.S. and Mexico. The filings come just months after FAT Brands announced plans to expand Fatburger, despite its estimated $1.5 billion debt much of which was incurred through acquisitions."
FAT Brands filed for Chapter 11 in the U.S. Bankruptcy Court for the Southern District of Texas amid debt exceeding $1 billion. The franchiser operates 18 restaurant brands and more than 2,200 locations and expects restaurants to remain open during the restructuring. Twin Peaks Hospitality Group, a subsidiary spun off last year to oversee the Twin Peaks sports bar chain, also filed for bankruptcy. FAT previously announced expansion plans for Fatburger despite an estimated $1.5 billion debt largely incurred through acquisitions. Industry-wide declines in dine-in traffic from inflation and economic uncertainty have reduced franchise openings and royalty revenue. FAT plans to use Chapter 11 to strengthen its balance sheet and create financial flexibility to advance growth.
Read at www.mercurynews.com
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