FAT Brands Inc. has filed for voluntary Chapter 11 bankruptcy protection. Through the court-supervised process, the company aims to reduce debt and strengthen its balance sheet. In addition, it is intending to support the growth of its subsidiaries and get maximum value for its stakeholders.
FAT Brands Files for Chapter 11 in Texas Bankruptcy Court
According to PACER records, FAT Brands Inc. submitted its Chapter 11 petition in the U.S. Bankruptcy Court for the Southern District of Texas. This was a voluntary filing, which was made on January 26, 2026.
”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. 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,” said Andy Wiederhorn, CEO of FAT Brands, in a statement.
Wiederhorn added that the company plans to use the Chapter 11 process to work closely with key stakeholders on value-maximizing strategies. In addition, services will continue across its affiliated brands, while continuing to support customers, franchise partners, and more than 45,000 corporate and franchise employees.
More than 180 Subsidiaries File for Chapter 11
Court filings show that more than 180 affiliated entities also filed for Chapter 11 alongside the parent company. These include Bonanza Restaurant Company LLC, MaggieMoo’s Franchising, LLC, and Round Table Pizza, Inc.
Court records add that these affiliated brands are requesting that their chapter 11 cases be consolidated and jointly administered along with the debtor, FAT Brands Inc.
Q3 2025 Results Signal Financial Strain
In its third fiscal quarter, which ended September 28, 2025, FAT Brands Inc.’s total revenue declined 2.3% to $140.0 million compared to $143.4 million in the fiscal third quarter of 2024. Systemwide sales also declined 5.5%, including a 3.5% drop in same-store sales.
FAT Brands Debt Accelerated After Lender Declares Default
A Form 8-K filing shows that on November 25, 2025, FAT Brands Inc. received a notice of acceleration from UMB Bank in its capacity as indenture trustee, acting on behalf of and at the direction of investors holding secured notes.
The accelerated debt relates to $158.9 million in secured notes issued by the company’s subsidiary, FB Resid Holdings I, LLC, with UMB serving solely as trustee for the noteholders rather than as a lender.
About FAT Brands Inc.
FAT Brands is a franchised operator that acquires, develops, and markets several fast casual dining concepts worldwide.
Its current portfolio includes Round Table Pizza, Fatburger, Marble Slab Creamery, Johnny Rockets, Fazoli’s, Twin Peaks, Great American Cookies, Smokey Bones, Hot Dog on a Stick, Buffalo’s Cafe & Express, Hurricane Grill & Wings, Pretzelmaker, Elevation Burger, Native Grill & Wings, Yalla Mediterranean, and Ponderosa and Bonanza Steakhouses.
Case Related Details
According to filing records, the legal counsel to FAT Brands Inc. in the Chapter 11 case is Latham & Watkins LLP. Other involved parties are GLC Advisors & Co., LLC as the investment banker and Huron Consulting Services LLC as the financial advisor. In addition, Omni Agent Solutions, Inc. is the noticing and solicitation agent for the franchising operator.
Attorney Timothy A. (“Tad”) Davidson II of Hunton Andrews Kurth LLP is legally representing the franchising company in court. Additional details listed in the petition include:
- Filing Date: January 26, 2026
- Court and Jurisdiction: U.S. Bankruptcy Court for the Southern District of Texas
- Type of Filing: Active, Voluntary Petition
- Chapter: 11
- Case Number: 26-90126
- Estimated Assets: $1,000,000,001-$10 billion
- Estimated Liabilities: $1,000,000,001-$10 billion
- Reason for Filing: Restructure debts, assist subsidiary entities, get maximum value for stakeholders
The filing estimates that FAT Brands has between 1,000 and 5,000 creditors. Funds will be available for distribution to these unsecured creditors, as per the filing details.
FAT Brands Inc., as shown in the filing details, has submitted a corporate ownership statement and a list of equity security holders in the court. Additionally, a unanimous consent of the authorizing bodies of Fat Brands Inc. and respective subsidiaries was also filed.
FAT Brands Inc.’s latest bankruptcy filing shows the impact of performance pressures and rising debts. The restructuring is expected to reshape the company’s balance sheet while positioning its restaurant brands for long-term growth.
