January 1, Fatburger Parent’s Debt Crisis Spurs Bankruptcy

Wyatt’s Take

• Big brand restaurants are filing for bankruptcy while everyday folks struggle to pay more for food.
• FAT Brands owes $1.3 billion, and creditors are ready to take control if bills don’t get paid.
• The company’s CEO claims this move will help them bounce back, but times are tough all over.

FAT Brands, owners of Fatburger, Johnny Rockets, and Round Table Pizza, filed for Chapter 11 bankruptcy in Texas. They hope this step will let them handle $1.3 billion in debt and keep running more than 2,300 restaurants across the globe.

CEO Andy Wiederhorn said the company is “well positioned for long-term profitability and growth” and believes bankruptcy will help “support our concepts and ensure they remain at the forefront of their sectors.”

The company’s cash flow fell behind. In October, FAT Brands missed payments, and creditors demanded full payment or threatened to seize the restaurant businesses.

A spokesman said, “market conditions over the past few years have been difficult and largely unforeseen,” as restaurants everywhere deal with higher prices and fewer customers. The company has only $2.1 million in unrestricted cash and is using that to cover employee paychecks during bankruptcy.

Other big chains like Red Lobster and Hooters have already filed for bankruptcy in the past year. FAT Brands says all their restaurants will stay open for business while they go through this process, and their stocks will still trade, though marked for bankruptcy.

Twin Hospitality Group, which runs Twin Peaks and Smokey Bones, also filed for bankruptcy after splitting from FAT Brands in 2025.

If giant restaurant brands are losing ground, it makes you wonder how smaller businesses can even survive. Hard-working Americans are paying the price for years of bad economic management, rising costs, and empty promises from big-shot executives. Folks here in the heartland know that when money gets tight, you can’t just file papers—you have to buckle down and make ends meet, because no one is bailing us out.

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Wyatt Matters

Economic storms hit everywhere, but it’s regular people and honest businesses in Middle America who feel it most. While corporate bosses dodge responsibility, families here know you have to earn what you keep, even when times get tough.