FAT Brands and Twin Hospitality File for Chapter 11 Bankruptcy Protection
facing meaningful debt and a recent lawsuit, the parent companies of Twin Peaks and Smokey Bones restaurants have initiated voluntary bankruptcy proceedings.
In a move poised to reshape the landscape of casual dining,FAT Brands Inc. and Twin Hospitality Group Inc. have filed for Chapter 11 bankruptcy protection. The filing encompasses a diverse portfolio of resturant chains, including Fazoli’s, Round Table Pizza, Johnny Rockets, Smokey Bones, and the flagship Fatburger, alongside Fog Cutter Capital. Twin Hospitality specifically owns and operates the popular Twin Peaks restaurant and bar concept.
According to a company release, FAT Brands asserts its brands have shown “tremendous resilience” despite a challenging operating environment. “We are well positioned for long-term profitability and growth,” the statement reads. “The chapter 11 process will provide us with the opportunity to strengthen our capital structure to support our concepts and ensure they remain at the forefront of their sectors.”
Twin Hospitality echoed this sentiment, stating that Twin Peaks has “redefined the sports bar experience” and remains poised for “meaningful global expansion.” The company believes the bankruptcy proceedings will allow it to “strengthen our balance sheet and create financial flexibility to advance this growth.”
The filings come on the heels of a legal challenge from Investor 352 Fund, FAT Brands’ largest bondholder.Nation’s restaurant News (NRN) reported that the fund initiated a lawsuit against FAT brands just days prior, seeking $109 million and claiming ownership of Class B Common stock tied to Twin Peaks.
Further compounding the financial strain, FAT Brands reportedly owed $1.26 billion to debtors as of November 2025, prompting internal warnings of potential bankruptcy. A senior official within the company acknowledged the situation in a memo to franchisees, as reported by NRN, stating that they were engaged in “active, constructive discussions with bondholders to prudently reshape parts of our balance sheet.” These negotiations were framed as a broader effort to bolster the company’s financial standing and continue investing in its brands.
Despite the bankruptcy filing,both Twin Peaks and Smokey Bones locations are expected to remain open and continue operations without interruption. “We plan to use this process to connect with key stakeholders around a value-maximizing plan and will act prudently to remain steadfast in upholding and protecting stakeholder interests,” a Twin Hospitality representative stated. “Our focus in this process remains providing quality service to our customers and supporting our franchise partners and the thousands of corporate and franchise employees.”
The restructuring process will be closely watched by industry analysts and stakeholders as FAT Brands and Twin Hospitality navigate these challenging financial waters.
Why, Who, What, and How did it end?
Why: FAT Brands and Twin Hospitality filed for Chapter 11 bankruptcy protection due to significant debt-$1.26 billion as of November 2025-and a recent lawsuit from their largest bondholder, Investor 352 Fund, seeking $109 million and claiming ownership of Twin Peaks stock.
Who: the companies involved are FAT Brands inc., Twin Hospitality Group Inc., and their subsidiaries including Twin Peaks, Smokey Bones, Fazoli’s, Round Table Pizza, Johnny Rockets, and Fatburger. Investor 352 Fund is the primary creditor initiating legal action.
What: FAT Brands and Twin Hospitality voluntarily filed for Chapter 11 bankruptcy protection to restructure
