Fat Brands gorged itself on restaurant chains until it could barely move. Now, after filing for bankruptcy with $1.5 billion in debt, the holding company is being carved up and sold for parts. A bankruptcy court on Tuesday approved the sale of the company’s 15 chains—including Twin Peaks, Johnny Rockets, Fazoli’s, and Round Table Pizza—in four deals valued at nearly $1 billion.
Two chains were sold in cash deals: Hot Dog on a Stick for $8 million, and Elevation Burger for $2.5 million to a Kuwaiti company. Twin Peaks is being sold to lenders for $359.5 million in debt converted to equity. The rest (11 chains, including Johnny Rockets and Fazoli’s) is going to another lender group for $595 million in converted debt. One chain, Smokey Bones, was shut down.
The sale followed a dispute that forced out founder Andy Wiederhorn and his family—though Wiederhorn walked away with $5 million. The settlement created a process to sue former management to provide some recovery for lenders stuck with the bill.
Fat Brands gorged itself on restaurant chains until it could barely move. Now, after filing for bankruptcy with $1.5 billion in debt, the holding company is being carved up and sold for parts. A bankruptcy court on Tuesday approved the sale of the company’s 15 chains—including Twin Peaks, Johnny Rockets, Fazoli’s, and Round Table Pizza—in four deals valued at nearly $1 billion.
Two chains were sold in cash deals: Hot Dog on a Stick for $8 million, and Elevation Burger for $2.5 million to a Kuwaiti company. Twin Peaks is being sold to lenders for $359.5 million in debt converted to equity. The rest (11 chains, including Johnny Rockets and Fazoli’s) is going to another lender group for $595 million in converted debt. One chain, Smokey Bones, was shut down.
The sale followed a dispute that forced out founder Andy Wiederhorn and his family—though Wiederhorn walked away with $5 million. The settlement created a process to sue former management to provide some recovery for lenders stuck with the bill.