FAT Brands Files Chapter 11 to Delever Balance Sheet, Keep 2,200+ Locations
FAT Brands Inc. filed voluntary Chapter 11 petitions in the U.S. Bankruptcy Court for the Southern District of Texas to deleverage its balance sheet and maximize stakeholder value. Its portfolio of 18 restaurant concepts spanning over 2,200 global locations — including Fatburger, Johnny Rockets, and Round Table Pizza — will continue operating during restructuring.
1. FAT Brands Initiates Chapter 11 Proceedings
On January 26, 2026, FAT Brands Inc., the franchising powerhouse behind Fatburger, Johnny Rockets and 16 other restaurant concepts, filed voluntary Chapter 11 petitions in the U.S. Bankruptcy Court for the Southern District of Texas. The company, which oversees more than 2,200 locations worldwide and employs over 45,000 corporate and franchise staff, intends to continue normal operations throughout the restructuring. Trading of FAT Brands’ Nasdaq-listed securities will carry a “Q” suffix during the process.
2. Restructuring Plan Aims to Deleverage and Maximize Stakeholder Value
FAT Brands’ management outlined plans to deleverage the balance sheet, strengthen the capital structure and support long-term brand growth. Legal counsel Latham & Watkins LLP and advisors GLC Advisors, Huron Consulting and Omni Agent Solutions have been retained to guide claims administration and stakeholder communications. The company projects that unlocking liquidity through the Chapter 11 process will enable continued franchisee support, targeted marketing investments and potential future acquisitions once a value-maximizing reorganization plan is confirmed.