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Fat Brands Files Chapter 11 Bankruptcy After Attempting Massive Expansion
['Mann Aggarwal']
The Daily Caller
FAT Brands’ portfolio includes 18 restaurant concepts spanning fast casual, quick-service and casual dining, with more than 2,300 locations worldwide, according to the company’s website.
The filing came months after FAT Brands announced an expansion deal to add 40 Fatburger locations in Florida over the next decade.
A key factor was FAT Brands’ default on its roughly $1.3 billion in whole business securitization debt.
Creditors warned they could foreclose on the collateral — the restaurant brands themselves — if FAT didn’t file for bankruptcy protections.
FAT Brands reported having just $2.1 million in unrestricted cash at the time of filing.