Fazoli’s Closes More Michigan Restaurants as FAT Brands Faces Bankruptcy

Signs on the doors of Fazoli’s locations at 2521 Alpine Ave. NW in Walker and 1780 E. Sherman Blvd. in Muskegon announced the stores were closed, with the notices reading, “This location is now closed. Thank you for supporting this Fazoli’s location. We have enjoyed the opportunity to serve you.” Local reporters observed the signs on Feb. 24 and Feb. 25, and both Google business pages for the Walker and Muskegon sites were later listed as permanently closed.

At the Muskegon site a nearby restaurant manager reported seeing people remove equipment from the building on Tuesday, and WZZM-13 visited both West Michigan locations to document the closure signs and removal activity. WZZM also noted Fazoli’s corporate website still lists Michigan locations, but only certain stores appear to accept online orders.

The closures come as parent company FAT Brands Inc. pursues a Chapter 11 reorganization. WKFR cited Bloomberg reporting that FAT Brands’ debt restructuring faces potential complications from litigation with creditors. Patch reported that UMB Bank, acting for the company’s lenders, has demanded payment of nearly $1.3 billion in securitized debt in a U.S. Securities and Exchange Commission acceleration notice. In a company statement carried by WKFR the CEO said, “Our focus in this process remains providing quality service to our customers and supporting our franchise partners and the thousands of corporate and franchise employees.”

These two recent shutdowns follow earlier Michigan closures in Jenison at 570 Baldwin St., which closed in December, and in Kalamazoo at 4615 West Main St., which closed in September, as reported by MLive and cited by local outlets. WITL reported that after the latest closures there are “Only 3 Fazoli’s Locations Left in Michigan,” while WZZM, WKFR and AOL via Click on Detroit have counted four remaining Michigan sites.

Outlets diverge on which stores remain open: multiple reports list Battle Creek, Lansing and Jackson as continuing locations. AOL and Click on Detroit additionally state Fazoli’s still owns and runs a location in Monroe and one near the Michigan-Indiana border in Mishawaka. WZZM said the only Michigan locations that appear to still be open, because they still allow online orders, are in Battle Creek, Lansing, Jackson and Monroe.

The shakeout at Fazoli’s fits a broader pattern in the sector. WITL put Fazoli’s at roughly 190 locations nationwide, and WOOD-TV cited National Restaurant Association data that more than nine in 10 operators name rising food, labor, insurance, energy and swipe fees as significant challenges, with 42 percent of operators reporting they were not profitable in 2025. WOOD-TV also listed recent Chapter 11 filings among Italian-themed chains, naming Bravo Brio Restaurants, Bertucci’s, Buca Di Peppo, EYM Pizza, People First Pizza Inc., and Red Door Pizza.

With FAT Brands in Chapter 11 and lenders pressing an acceleration notice, the status of Fazoli’s remaining Michigan restaurants — and whether closed sites were corporate-owned or franchise decisions — remains unresolved as legal and creditor actions proceed.