Los Angeles-based FAT Brands, the parent company behind several well-known restaurant chains, has filed for Chapter 11 bankruptcy protection as it looks to restructure roughly $1.3 billion in debt and stabilize its finances. Several restaurant locations have been shuttered as a result, impacting many well-known restaurant chains across the country.
Debt restructuring underway
The company announced the filing in early 2026, saying the move will allow it to reorganize while continuing operations across its portfolio of restaurant brands. FAT Brands said most restaurants will remain open and operating normally during the bankruptcy process, though it’s already shuttered many (primarily Smokey Bones locations).
Founded in 2017 as a restaurant holding company, FAT Brands rapidly expanded through a series of acquisitions, bringing numerous quick-service and casual dining brands under one corporate umbrella.
Several restaurant chains affected
The bankruptcy impacts a wide range of restaurant brands owned or franchised by FAT Brands, including burger chain Fatburger, diner-style concept Johnny Rockets, BBQ chain Smokey Bones, and pizza franchise Round Table Pizza.
Other brands in the company’s portfolio include sports bar concept Twin Peaks, Great American Cookies, pretzel brand Pretzelmaker, dessert shop Marble Slab Creamery, and Hot Dog on a Stick.
Together, the brands operate thousands of locations globally through a mix of franchised and company-owned restaurants.
Aggressive growth strategy created heavy debt
Industry analysts say FAT Brands’ rapid acquisition strategy helped it quickly scale its restaurant portfolio but also left the company with a significant debt burden.
The company acquired multiple restaurant brands over the past several years, including the purchase of Johnny Rockets in 2020 and Round Table Pizza through its earlier acquisition of Global Franchise Group.
Like many restaurant operators, FAT Brands has also faced rising labor costs, higher food prices, and shifting consumer dining habits.
The company said it expects the Chapter 11 process to help strengthen its balance sheet while allowing its restaurant brands to continue operating and serving customers during the restructuring.
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