A US bankruptcy court has approved a liquidation plan for the US-based fast-food company Fat Brands. The decision follows the company's bankruptcy filing in January, which reported approximately $1.4 billion in debt.
The majority of the debt held by Fat Brands originated from bonds resulting from securitization transactions conducted between 2021 and 2023. Fat Brands had reportedly used financing to acquire restaurant brands including Twin Peaks, Fazoli's, Johnny Rockets, Round Table Pizza, and Hot Dog on a Stick.
Under the approved plan, the assets of Fat Brands were sold in four parts in May. US Bankruptcy Judge Alfredo Perez approved the exit strategy after evaluating various objections. During the sale process, a significant portion of the debt was converted into equity.
Asset sales and brand transfers
The Hot Dog on a Stick brand was sold to Las Vegas-based Amazing Brands for $8 million. The fast-service burger chain Elevation Burger was transferred to a Kuwait-based company for $2.5 million.
The Twin Peaks brand was sold to a separate group of bondholders and is planned to be transferred to a group of franchise owners at a later date.
Sale price of the Hot Dog on a Stick brand to Amazing Brands
Legal considerations
The approved plan includes funding for potential lawsuits against former Fat Brands CEO Andy Wiederhorn.
