Fat Brands Is Being Carved Into Four Pieces After a $1.5 Billion Bankruptcy. Here’s Who’s Buying What.
A bankruptcy court approved the sale of the company — which owns Twin Peaks, Johnny Rockets, and Fazoli’s — in four separate deals.
Fat Brands gorged itself on restaurant chains until it could barely move. Now, after filing for bankruptcy with $1.5 billion in debt, the holding company is being . A bankruptcy court on Tuesday approved the sale of the company’s 15 chains—including Twin Peaks, Johnny Rockets, Fazoli’s, and Round Table Pizza—in four deals valued at nearly $1 billion.
Two chains were sold in cash deals: Hot Dog on a Stick for $8 million, and Elevation Burger for $2.5 million to a Kuwaiti company. Twin Peaks is being sold to lenders for $359.5 million in debt converted to equity. The rest (11 chains, including Johnny Rockets and Fazoli’s) is going to another lender group for $595 million in converted debt. One chain, Smokey Bones, was shut down.
The sale followed a dispute that forced out founder Andy Wiederhorn and his family—though Wiederhorn walked away with $5 million. The settlement created a process to sue former management to provide some recovery for lenders stuck with the bill.
