The parent company of Johnny Rockets, Fatburger and Round Table Pizza filed for Chapter 11 bankruptcy protection.
Beverly Hills-based Fat Brands Inc. said in a statement that it filed for bankruptcy on Monday to restructure the debt it accumulated while expanding its company portfolio, citing “difficult and largely unforeseen” market conditions.
The company’s portfolio includes several brands with roots in the Southland. It owns retro diner chain Johnny Rockets, founded in 1986 on Los Angeles’ Melrose Avenue; shopping mall staple Hot Dog on a Stick, founded in 1964 in Santa Monica; and hamburger chain Fatburger, founded in 1947 in Los Angeles’ Exposition Park neighborhood.
Fat Brands also has investments in two brands that got their start in the Bay Area: pizza chain Round Table Pizza, founded in 1959 in Menlo Park, and fast-casual chain Yalla Mediterranean, founded in 2014 in Pleasant Hill.
The company has accumulated more than $1 billion in debt, according to its Securities and Exchange Commission filing. The company filed for bankruptcy protection in the U.S. Bankruptcy Court for the Southern District of Texas.
“Our dynamic portfolio of brands has demonstrated tremendous resilience in a challenging restaurant operating environment over the last few years,” Fat Brands Chief Executive Andrew Wiederhorn said in a statement.
Chapter 11 protection will give the company an opportunity to “strengthen our capital structure to support our concepts,” he said.
Fat Brands has a portfolio of 18 restaurant concepts with more than 2,200 locations worldwide, according to the company’s November SEC filing. More than 90% of its locations are franchised.
Its shares tumbled 13% Thursday. They have fallen close to 90% over the last three months. It received a delisting notice from the Nasdaq market earlier this month.
Company spokesperson Erin Mandzik said in an email that the company’s restaurants are expected to remain operating as usual throughout the reorganization process.
The Times reported in 2022 that Wiederhorn, Fat Brands’ founder, was investigated for alleged tax fraud. Charges were dismissed in July, but a federal judge ordered the U.S. Department of Justice to explain its decision, as reported by the Los Angeles Business Journal.
The parent company of Johnny Rockets, Fatburger and Round Table Pizza filed for Chapter 11 bankruptcy protection.
Beverly Hills-based Fat Brands Inc. said in a statement that it filed for bankruptcy on Monday to restructure the debt it accumulated while expanding its company portfolio, citing “difficult and largely unforeseen” market conditions.
The company’s portfolio includes several brands with roots in the Southland. It owns retro diner chain Johnny Rockets, founded in 1986 on Los Angeles’ Melrose Avenue; shopping mall staple Hot Dog on a Stick, founded in 1964 in Santa Monica; and hamburger chain Fatburger, founded in 1947 in Los Angeles’ Exposition Park neighborhood.
Fat Brands also has investments in two brands that got their start in the Bay Area: pizza chain Round Table Pizza, founded in 1959 in Menlo Park, and fast-casual chain Yalla Mediterranean, founded in 2014 in Pleasant Hill.
The company has accumulated more than $1 billion in debt, according to its Securities and Exchange Commission filing. The company filed for bankruptcy protection in the U.S. Bankruptcy Court for the Southern District of Texas.
“Our dynamic portfolio of brands has demonstrated tremendous resilience in a challenging restaurant operating environment over the last few years,” Fat Brands Chief Executive Andrew Wiederhorn said in a statement.
Chapter 11 protection will give the company an opportunity to “strengthen our capital structure to support our concepts,” he said.
Fat Brands has a portfolio of 18 restaurant concepts with more than 2,200 locations worldwide, according to the company’s November SEC filing. More than 90% of its locations are franchised.
Its shares tumbled 13% Thursday. They have fallen close to 90% over the last three months. It received a delisting notice from the Nasdaq market earlier this month.
Company spokesperson Erin Mandzik said in an email that the company’s restaurants are expected to remain operating as usual throughout the reorganization process.
The Times reported in 2022 that Wiederhorn, Fat Brands’ founder, was investigated for alleged tax fraud. Charges were dismissed in July, but a federal judge ordered the U.S. Department of Justice to explain its decision, as reported by the Los Angeles Business Journal.
