FAT Brands is preparing to sell all or part of its business, including major restaurant brands such as Fatburger, Johnny Rockets, Twin Peaks and Round Table Pizza, as it progresses through Chapter 11 bankruptcy proceedings.
According to court filings, the company is seeking approval to launch a formal sale process, with bids expected to be invited starting in April. The proposed structure allows for the sale of “all, substantially all, or any portion” of its assets, giving potential buyers the option to acquire individual brands or the broader portfolio.
FAT Brands’ portfolio spans 18 concepts, also including Fazoli’s, Marble Slab Creamery, Great American Cookies, Hot Dog on a Stick, Elevation Burger and Yalla Mediterranean. The group operates more than 2,200 locations globally, the majority of which are franchised.
The move is part of a broader restructuring effort after the company filed for Chapter 11 protection in January 2026, weighed down by more than $1 billion in debt and rising operational pressures.
Court documents underline the flexibility of the process, allowing for either a full-company sale or divestment of select brands depending on bidder interest. The process is designed to maximise value for creditors while maintaining stability across operations.
Despite the bankruptcy and potential sale, FAT Brands has said its restaurants will continue to operate as normal, with ongoing support for franchisees and employees across its system.
The restructuring has also triggered leadership changes. Founder and former CEO Andrew Wiederhorn recently stepped down under a court-approved agreement with lenders, who are providing fresh financing to support the business through the sale process.
The case highlights mounting pressure on multi-brand restaurant operators grappling with high debt levels, inflation and softer consumer demand. For franchisees, the outcome of the sale process could reshape brand ownership and future growth strategies across several well-known concepts.
