Iconic sports bar, BBQ chain owner files Chapter 11
thestreet.com • • business
Key Points:
- FAT Brands, parent company of over 18 restaurant concepts including Fatburger and Johnny Rockets, filed for voluntary Chapter 11 bankruptcy on January 26, 2026, in the U.S. Bankruptcy Court for the Southern District of Texas to deleverage its balance sheet and support continued growth.
- The company faces approximately $1.6 billion in debt tied to securitized borrowings and leveraged acquisitions, which has strained its cash flow and led to a default notice from key lenders.
- Despite the bankruptcy filing, FAT Brands plans to keep its 2,200+ restaurant locations operational and expects its Nasdaq-traded securities to continue trading with a “Q” suffix indicating bankruptcy proceedings.
- CEO Andy Wiederhorn stated that negotiations with about 25 note
