FAT Brands Bankruptcy Restructuring Concludes With $595 Million Asset Sale

FAT Brands’ years-long acquisition strategy has officially come to an end after the company completed the largest portion of its bankruptcy restructuring, according to a recent QSR Magazine article.

A lender-backed ownership group, FBG Bid Co., acquired substantially all assets tied to 13 FAT Brands restaurant concepts for approximately $595 million. The transaction transfers control of more than 1,700 restaurants worldwide and marks a significant milestone in the company’s Chapter 11 proceedings.

The sale includes several well-known franchise brands, including Fatburger, Round Table Pizza, Johnny Rockets, Fazoli’s, Great American Cookies, Marble Slab Creamery, Pretzelmaker, Buffalo’s Cafe and Express, Hurricane Grill & Wings, Native Grill & Wings, and Ponderosa and Bonanza Steakhouses. The deal also includes the Georgia manufacturing facility that supports Great American Cookies and Pretzelmaker operations.

The transaction was approved by the U.S. Bankruptcy Court for the Southern District of Texas following a court-supervised auction process.

At its peak, FAT Brands operated more than 2,200 restaurants worldwide and built a reputation as an aggressive acquirer of franchise concepts. Between 2020 and 2023, the company spent nearly $1 billion acquiring restaurant brands across multiple categories, financing much of that growth through securitized debt. The strategy ultimately left the company burdened with approximately $1.5 billion in debt.

FAT Brands filed for Chapter 11 bankruptcy protection in January after facing mounting financial challenges and disputes with lenders. As part of the restructuring process, founder and CEO Andy Wiederhorn stepped down, several board members departed, and a negotiated settlement helped clear the way for asset sales and ownership transfers.

The lender-backed acquisition represented the largest component of the restructuring effort. During the sale process, more than 175 strategic and financial buyers were contacted, while dozens of parties expressed interest in the assets.

Several brands were sold separately. Amazing Brands LLC acquired Hot Dog on a Stick for $8 million, while TABCO International Food Catering K.S.C.C. purchased Elevation Burger for $2.5 million.

Twin Peaks was also separated from the portfolio through a separate $359.5 million lender-backed transaction. The sports lodge chain is now owned by Summit Twin Hospitality I, LLC, a group made up largely of experienced Twin Peaks franchise operators. Meanwhile, Smokey Bones did not survive the restructuring after failing to attract a qualified buyer, resulting in closures and conversions of some locations into Twin Peaks restaurants.

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