Lenders Secure FAT Brands Assets in $595 Million Bankruptcy Exit

A group of lenders has finalized the acquisition of FAT Brands for $595 million, effectively seizing control of 1,700 restaurant locations worldwide. The deal marks the culmination of a contentious bankruptcy process that recently stripped founder Andrew Wiederhorn of his leadership role and ousted his family members from the company’s operations.

Today, 19:28· Money Talk· 1,013 reads

Lenders Secure FAT Brands Assets in $595 Million Bankruptcy Exit

The purchasing entity, FBG Bid, confirmed the transaction encompasses 13 distinct brands, including staples like Fatburger, Round Table Pizza, Johnny Rockets, and Great American Cookies. The sale received the necessary green light from the federal bankruptcy court in Texas, which oversaw the restructuring proceedings initiated after the Beverly Hills-based operator filed for Chapter 11 protection in January.

This transfer of ownership follows a decisive court ruling three months ago that forced Wiederhorn out of the chief executive office. Tensions had mounted throughout last year as the company struggled to reconcile its significant debt load with a fractured group of creditors. Unable to reach a consensus, the firm ultimately entered court-supervised proceedings, resulting in the complete transition of assets away from the founding management team.

Lenders Secure FAT Brands Assets in $595 Million Bankruptcy Exit

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