Fatburger Owner Files for Bankruptcy

The company owns 18 restaurant chains with 2,200 locations worldwide.

People wait for takeout orders near the closed dine-in section at a Fatburger restaurant in Inglewood, Calif. Mario Tama/Getty Images

FAT Brands Inc., owner of 18 restaurant chains worldwide, has voluntarily filed Chapter 11 petitions for financial restructuring.

The Los Angeles-based mega-franchiser announced this week that it had filed proceedings in the U.S. Bankruptcy Court for the Southern District of Texas. FAT Brands reported that it intends to restructure capital to maximize value for its shareholders and continue to grow its brands.

The company’s portfolio includes well-known restaurant brands such as Fatburger, Johnny Rockets, Ponderosa Steakhouse, Round Table Pizza, Great American Cookies, Hurricane Grill & Wings, Fazoli’s, and more. In total, FAT Brands owns more than 2,200 locations worldwide.

Internationally, its locations include Canada, China, Saudi Arabia, UAE, Iraq, Malaysia, Fiji, Indonesia, India, Pakistan, Panama, Philippines, Chile, Mexico, Brazil, Egypt, and Israel.

In the meantime, trading of FAT Brands’ securities on NASDAQ is expected to continue with a “Q” suffix, alerting potential investors that the stock issuer is undergoing reorganization.

“Our dynamic portfolio of brands has demonstrated tremendous resilience in a challenging restaurant operating environment over the last few years. We are well-positioned for long-term profitability and growth,” FAT Brands CEO Andy Wiederhorn said in the announcement.

“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.”

Wiederhorn shared that the company will connect with key stakeholders concerning a plan to maximize value and protect their interests. In addition, FAT Brands will continue to provide quality service to its franchise partners, customers and 45,000 corporate and franchise employees.

FAT Brands reported a $3.4 million decline in revenue in the third quarter of 2025, to $140 million, compared with $143.4 million in the same quarter in 2024. The company attributed the drop to the closure of 11 underperforming Smokey Bones restaurants and the conversion of two of those locations to a Twin Peaks lodge.

The company also noted general and administrative expense increases of $8.2 million during the third quarter, as well as $2.1 million in increased advertising expenses.

The total net expenses for the third quarter of 2025 reached $41 million, compared with $35.8 million at the end of the 2024 third quarter.

In its third-quarter report, the company indicated it opened 60 new restaurants in 2025 and had been committed to a strategic expansion plan with up to 900 new locations. The plan included a partnership with Virtual Dining Concepts to make Great American Cookies available at Chuck E. Cheese locations nationwide.

“We are implementing several strategic initiatives to strengthen our balance sheet. Our dividend pause remains in effect, preserving $35–40 million in annual cash flow,” FAT Brands CFO Ken Kuick said in that report. “We are actively negotiating a debt restructuring with our noteholders.”

Last September, Wiederhorn returned to FAT Brands as CEO following the dismissal of fraud charges by the U.S. Attorney’s Office in California. Wiederhorn had been indicted on federal charges of allegedly trying to conceal $47 million in distributions received in the form of shareholder loans.

Regarding the company’s Chapter 11 filing, Latham & Watkins LLP is serving as legal counsel to FAT Brands, Inc.  GLC Advisors & Co., LLC is serving as investment banker, Huron Consulting Services LLC is serving as financial adviser, and Omni Agent Solutions, Inc. is serving as claims, noticing and solicitation agent.