Bankrupt restaurant chains permanently close popular locations

Core Insights - Casual and fast-casual restaurant chains are facing unsustainable debt obligations, leading to closures of underperforming locations and potential bankruptcy filings [1][2] - FAT Brands, a major restaurant operator, has filed for Chapter 11 bankruptcy, closing 32 locations and rejecting leases to alleviate financial burdens [8][10] - The company reported over $582 million in assets and more than $95 million in debts at the time of filing [11] Company-Specific Summary - FAT Brands operates over 2,200 restaurants and has closed 32 locations under various banners, including Smokey Bones and Johnny Rockets, to reduce lease payments by over $492,000 monthly [10][11] - The company defaulted on $1.3 billion in debt, which exacerbated its financial issues and led to the bankruptcy filing [13][14] - FAT Brands aims to use the Chapter 11 process to strengthen its capital structure and engage with stakeholders for a value-maximizing plan [11][12] Industry Trends - The survival rate for new restaurants is approximately 83.1% in the first year, but only 51.4% survive five years, and just 34.6% last a decade [3][4] - Several casual dining chains have filed for Chapter 11 bankruptcy in recent years, indicating a trend of financial distress within the industry [4]