Twin Peaks Parent Company Files for Bankruptcy

HOUSTON, TX — FAT Brands Inc., the parent company of Twin Peaks and a portfolio of major casual-dining chains, has filed for Chapter 11 bankruptcy protection, listing estimated assets and liabilities each ranging from $1 billion to $10 billion.

The Los Angeles-based company and its affiliates, including Twin Hospitality, filed the petitions in the Southern District of Texas, citing mounting liabilities and liquidity pressures. The filing seeks joint administration of all FAT Brands affiliates, including Fazoli’s, Round Table Pizza, Johnny Rockets, Smokey Bones, Fatburger and Fog Cutter Capital, a controlling shareholder.

In court documents, FAT Brands said it explored “strategic alternatives, including restructuring options,” and concluded bankruptcy protection was in the best interest of stakeholders.

The filing comes days after the company’s largest bondholder, Investor 352 Fund, sued FAT Brands for $109 million related to promised Class B common stock tied to ownership of Twin Peaks, which was issued by Twin Hospitality.

Financial strain intensified last November when the company disclosed it owed $1.26 billion to debtholders, an amount declared immediately due by indenture trustee UMB Bank. FAT Brands said at the time it lacked the liquidity to repay the debt and warned bankruptcy was possible.

Earlier this month, CEO Andy Wiederhorn said the debt was not guaranteed by the parent company as a whole and that discussions with bondholders were underway to restructure obligations. He also said the company’s acquisition spree in 2022 and the spinoff of Twin Peaks last year were intended to help lower borrowing costs.

Those efforts were complicated by a three-year federal criminal investigation into Wiederhorn for fraud and money laundering, which ended last July without charges. Wiederhorn has said the probe drained roughly $75 million from company resources.

In a letter to franchisees viewed by Nation’s Restaurant News, Wiederhorn said the bankruptcy process will be used to “optimize our capital structure, reduce debt obligations, and enhance our financial flexibility,” adding that royalties and advertising payments will continue to be collected and paid.

FAT Brands said day-to-day operations across its restaurant brands will continue during the reorganization.

San Angelo has a Twin Peaks located at 1601 Knickerbocker Road.