Operations

FAT Brands files for Chapter 11 bankruptcy to restructure debt

Photo: FAT Brands

January 26, 2026

Summarize with

FAT Brands Inc., the parent company of 18 restaurant concepts including Fatburger and Johnny Rockets, has filed for voluntary Chapter 11 bankruptcy protection in the U.S. Bankruptcy Court for the Southern District of Texas.

The Los Angeles-based company said it plans to deleverage its balance sheet and strengthen its capital structure. Despite the filings, FAT Brands' portfolio of more than 2,200 locations worldwide is expected to remain open and operate as usual.

"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," FAT Brands CEO Andy Wiederhorn said in a company press release.

The filing comes during a period of transition for the company's leadership. In July 2025, Federal prosecutors dropped criminal charges against Wiederhorn, who had been the subject of a long-running investigation into allegations of a $47 million "sham loan" scheme.

The NASDAQ update

Trading of FAT Brands' securities on the NASDAQ is expected to continue, though shares will likely be appended with a "Q" suffix to signify the bankruptcy status.

Earlier this month, the NASDAQ notified FAT Brands that its stock price was less than the minimum bid of $1, and the chain has until July 7 to meet the minimum for at least 10 consecutive trading days. If a company on the stock exchange fails to meet the $1 share price for 30 consecutive business days, it is no longer in compliance and faces delisting.

Founded on the philosophy of "Fresh, Authentic, Tasty," FAT Brands has grown from the single Fatburger brand — founded in Los Angeles in 1947 by Lovie Yancey — into a global franchising company. Its portfolio spans the fast casual, quick-service and casual dining segments across the globe.