Fat Brands Is Being Carved Into Four Pieces After a $1.5 Billion Bankruptcy. Here's Who's Buying What.

Fat Brands filed for bankruptcy with about $1.5 billion in debt and is being broken up through approved sales of its 15 restaurant chains. The bankruptcy court approved four deals valued at nearly $1 billion. Hot Dog on a Stick was sold for $8 million, and Elevation Burger was sold for $2.5 million to a Kuwaiti company. Twin Peaks is being transferred to lenders in exchange for $359.5 million of debt converted to equity. Eleven other chains, including Johnny Rockets and Fazoli’s, are going to another lender group for $595 million in converted debt. Smokey Bones was shut down. A dispute removed founder Andy Wiederhorn and his family, and a settlement created a process to sue former management for potential recovery for lenders.

"A bankruptcy court on Tuesday approved the sale of the company's 15 chains-including Twin Peaks, Johnny Rockets, Fazoli's, and Round Table Pizza -in four deals valued at nearly $1 billion. Two chains were sold in cash deals: Hot Dog on a Stick for $8 million, and Elevation Burger for $2.5 million to a Kuwaiti company. Twin Peaks is being sold to lenders for $359.5 million in debt converted to equity. The rest (11 chains, including Johnny Rockets and Fazoli's) is going to another lender group for $595 million in converted debt. One chain, Smokey Bones, was shut down."

"Now, after filing for bankruptcy with $1.5 billion in debt, the holding company is being carved up and sold for parts. The sale followed a dispute that forced out founder Andy Wiederhorn and his family-though Wiederhorn walked away with $5 million. The settlement created a process to sue former management to provide some recovery for lenders stuck with the bill."

"Two chains were sold in cash deals: Hot Dog on a Stick for $8 million, and Elevation Burger for $2.5 million to a Kuwaiti company. Twin Peaks is being sold to lenders for $359.5 million in debt converted to equity. The rest (11 chains, including Johnny Rockets and Fazoli's) is going to another lender group for $595 million in converted debt."

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