FAT Brands Inc.

Financing

Landlords in the Fat Brands bankruptcy think the sale process is too fast

Simon Property Group and other property owners believe that the timeline is too aggressive, leaving them little time to assess bids for the restaurant chains in an upcoming auction.

Financing

After weeks of uncertainty, Fat Brands gets its needed bankruptcy financing

The Bottom Line: In reaching a deal with lenders, the owner of restaurant chains like Twin Peaks and Fazoli’s will get a crucial lifeline that will get the company through its sale process.

The franchise operator’s board members will also resign while members of Wiederhorn’s family are leaving the company as part of a deal to finance the company through bankruptcy.

A Deeper Dive: Hilary Russ, editor at large of Law 360, joins the restaurant finance podcast to talk about the bankrupt owner of Twin Peaks, Round Table Pizza and several other chains.

The Bottom Line: The company’s franchised brands, including Twin Peaks, Fazoli’s and Round Table Pizza, have mostly struggled under the company’s ownership. Many could be tough to sell.

The owner of restaurant chains like Twin Peaks and Round Table Pizza is making progress in mediation with lenders and creditors and plans an April auction for its assets.

In a court filing, the bankrupt restaurant chain operator argues that lenders either knew about controversial actions by CEO Andy Wiederhorn before they invested, or such actions were disclosed.

352 Capital is arguing that the fast-food chain operator cannot use management fees and other cash to get the company through its reorganization.

The Bottom Line: The founder and majority owner of the restaurant chain operator has long been a controversial figure. That has not changed since the company filed for bankruptcy.

The bankrupt restaurant chain operator said that funds used from the sale of Twin Peaks stock were to be used to raise funds for the company and not to enrich CEO Andy Wiederhorn.

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