Parent of restaurant chain that started in Lexington files for bankruptcy
AI-generated summary reviewed by our newsroom.
- FAT Brands filed Chapter 11 in Texas to deleverage and pursue stakeholder value.
- Company will keep restaurants operating; filed with about $582M in assets.
- FAT seeks joint administration, NASDAQ listing to continue with a temporary “Q”.
FAT Brands Inc., the California-based restaurant conglomerate that has owned Fazoli’s since 2021, has filed for Chapter 11 reorganization bankruptcy protection in Texas.
According to a news release from FAT, the company “plans to use the filings to deleverage the balance sheet, maximize value for its stakeholders and support continued growth of its brands.”
The restaurants are expected to remain operating as usual during the Chapter 11 process, according to the company.
Fazoli’s was founded in Lexington as Gratzi’s in 1988 and became known for its fast-casual dining experience and unlimited breadsticks. The chain has four locations in Fayette County, along with Fazoli’s headquarters.
Besides Fazoli’s, FAT also owns Fatburger, Johnny Rockets, Marble Slab Creamery, Great American Cookies, Ponderosa and Bonanza Steakhouse and more. The company’s 18 restaurant brands include more than 2,200 locations worldwide. The company also has a 95% ownership of Twin Hospitality, which operates the Twin Peaks sports bar chain.
FAT Brands, Twin Hospitality and the debtor subsidiaries are asking for all the cases to be jointly administered. Shares of the publicly traded company will continue to be listed on the NASDAQ exchange, but with a “Q” suffix for now, according to the release.
According to the Wall Street Journal, the filing comes as FAT’s debt restructuring faces potential complications from litigation with creditors.
“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,” Andy Wiederhorn, CEO of FAT Brands, said in a release. “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. Our focus in this process remains providing quality service to our customers and supporting our franchise partners and the over 45,000 corporate and franchise employees.”
According to the initial filings in bankruptcy court, the company declared more than $582 million in assets and nearly $96 million in debts.
This story was originally published January 27, 2026 at 10:34 AM.
