FAT Brands Initiates Voluntary Chapter 11 Bankruptcy Proceedings
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 3d ago
0mins
Source: Yahoo Finance
- Voluntary Bankruptcy Filing: FAT Brands has initiated voluntary Chapter 11 proceedings in the Southern District of Texas to deleverage its balance sheet, aiming to maximize stakeholder value and support the continued growth of its brands.
- Ongoing Brand Operations: Despite the bankruptcy filing, FAT Brands' 18 restaurant concepts, including Fatburger and Johnny Rockets, are expected to continue operating normally, ensuring customers can still enjoy their signature dining experiences, which highlights the resilience of the brand.
- Employee Protection Commitment: CEO Andy Wiederhorn emphasized that the bankruptcy process will help protect the interests of over 45,000 employees while maintaining quality service for customers, ensuring the brands remain competitive in the industry.
- Legal and Financial Support: FAT Brands has engaged Latham & Watkins LLP as legal counsel, GLC Advisors & Co. as investment banker, and Huron Consulting Services LLC as financial advisor to ensure a smooth bankruptcy process and optimize restructuring plans.
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Analyst Views on FAT
About FAT
FAT Brands Inc. is a global franchising company, which acquires, markets, and develops fast casual, quick-service, casual dining, and polished casual dining concepts around the world. It owns 18 restaurant brands: 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, and franchises and owns over 2,300 units worldwide. Round Table Pizza is the franchisor of quick service restaurants located in California and the western United States. Hot Dog on a Stick is the franchisor of quick service restaurants located in regional malls in California and the western United States. Johnny Rockets is an international restaurant franchise and offers menu items including Certified Angus Beef cooked-to-order hamburgers, chicken sandwiches, and malts.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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