Fat Brands Inc. Files Chapter 11 Bankruptcy Amid $1B Debt, FAT Shares Down 90% in 3 Months

Fat Brands Inc. (NASDAQ: FAT), parent of Johnny Rockets, Fatburger and Round Table Pizza, filed for Chapter 11 bankruptcy on January 26, 2026, to restructure over $1 billion in debt accumulated during aggressive expansion amid “difficult and largely unforeseen” market conditions. The Beverly Hills-based franchisor operates 18 brands with 2,200+ global locations — over 90% franchised. CEO Andrew Wiederhorn stated the filing will “strengthen our capital structure.” Restaurants will remain open during restructuring. FAT shares plunged 13% on January 29 and nearly 90% over three months; Nasdaq issued a delisting notice earlier in January. The company filed in the U.S. Bankruptcy Court for the Southern District of Texas. Wiederhorn, previously investigated for alleged tax fraud (charges dismissed July 2025), remains CEO.