FAT Brands, Twin Hospitality File Chapter 11 to Restructure $1 Billion

FAT Brands Inc. and Twin Hospitality Group Inc. have filed voluntary Chapter 11 petitions in the U.S. Bankruptcy Court for the Southern District of Texas to reorganize securitized debt and preserve day-to-day operations across their global portfolio. The filings say the companies will operate as debtors-in-possession and have submitted customary first-day motions to maintain cash operations, preserve cash management and seek immediate access to cash collateral so restaurants and systems continue running during the restructuring.

Court papers and company statements frame the filing as a balance-sheet reset for a portfolio that spans 18 restaurant concepts and more than 2,200 locations worldwide, including Fatburger, Johnny Rockets, Round Table Pizza, Marble Slab Creamery, Fazoli’s, Twin Peaks and Smokey Bones. The company also highlighted a workforce that includes more than 45,000 corporate and franchise employees and said the Chapter 11 process is intended to support franchise partners while maximizing stakeholder value. CEO Andy Wiederhorn said, "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." He added the company planned to "connect with key stakeholders around a value-maximizing plan" and remain focused on "providing quality service to our customers and supporting our franchise partners and the over 45,000 corporate and franchise employees."

The bankruptcy papers describe assets and liabilities each in the range of $1 billion to $10 billion. The company’s earlier SEC disclosures in a November 8-K said it owed nearly $1.3 billion in securitized debt that was due immediately, while other public reporting has put related securitized totals above $1 billion. Chief Restructuring Officer John DiDonato wrote in the bankruptcy declaration that the company filed "with extremely limited cash on hand," quantified at about $2.1 million, underscoring the need for immediate access to cash collateral to maintain operations. Wiederhorn told investors in early January that FAT Brands generated about $60 million in free cash flow and that the company "just need[s] the debt stack restructured to be affordable."

For workers, the case presents both reassurance and risk. The company’s first-day motions and public statements are designed to keep kitchens staffed, payroll flowing and franchise operations intact during negotiations, but heavy securitized obligations and a complex noteholder landscape increase the chance of asset sales, unit closures or franchise-level disruptions if a deal is contested. The chain has already pared underperforming locations, closing 11 Smokey Bones restaurants in the third quarter of 2025.

What happens next will hinge on creditor talks, any court approval of interim financing or cash-collateral orders, and the pace of formal negotiations to confirm a plan. Employees and franchise partners should expect continued operations for now and watch for updates from corporate and local franchise management as FAT Brands and Twin Hospitality work through the Chapter 11 process.