FAT Brands files voluntary Chapter 11 petitions to reduce debt load

Core Viewpoint - FAT Brands has filed for voluntary Chapter 11 bankruptcy to restructure its debt and capital structure, aiming to enhance stakeholder value and support brand growth [1][2]. Group 1: Bankruptcy Filing Details - The filing follows FAT Brands' missed interest payments on its $1.2 billion debt, as reported by Bloomberg [2]. - Court documents indicate that FAT Brands has assets and liabilities both estimated between $1 billion and $10 billion [2]. - The company operates as a global franchising entity with a portfolio of 18 restaurant brands and over 2,200 locations worldwide [2]. Group 2: Operations During Bankruptcy - Key restaurant brands such as Fatburger, Johnny Rockets, and Round Table Pizza are expected to continue operations throughout the Chapter 11 process [3]. - Trading of FAT Brands' securities on NASDAQ is anticipated to continue with a "Q" suffix during the bankruptcy proceedings [3]. Group 3: Leadership and Strategic Intent - CEO Andy Wiederhorn stated that the Chapter 11 process will allow the company to strengthen its capital structure and maintain its competitive position [4]. - The company plans to engage with stakeholders to develop a value-maximizing plan while protecting their interests [4]. - Wiederhorn returned as CEO in September 2025 after previously resigning in May 2023 amid a federal investigation, which was later dismissed [5].