FAT Brands Inc.

Financing

Fat Brands' debt negotiations could take a while

The CEO of the owner of Round Table Pizza and Fazoli’s called the process for renegotiating its debt “painful and slow” and that he is trying to resolve it “out of court.”

Financing

Struggling Fat Brands gets 3 delisting notices

The restaurant franchise operator, which is in danger of bankruptcy, faces a delisting of its stock over its low price and market valuation.

CFO Kenneth Kuick, along with Thayer and Taylor Wiederhorn, have each received retention bonuses to remain with the company in case it files for bankruptcy. They also received $400,000 raises.

The Bottom Line: Lawsuits, regulatory filings and our own reports paint a picture of a deepening financial problem at the owner of Fazoli’s, Fatburger and several other restaurant chains.

The owner of Fatburger and Fazoli’s has been sued in a Delaware court over allegations that the company used short-term borrowing and merchant cash advances to hide a liquidity crisis.

The bank that acts as the trustee on the company’s securitized financing has sent an acceleration notice for the last of five shell companies that hold the restaurant operator’s debt.

The Bottom Line: The restaurant brand collector went from acquiring cheap chains to buying up much larger and more expensive brands using whole business securitizations. And then the market tanked.

The owner of companies like Fazoli’s, Twin Peaks and Johnny Rockets defaulted on its securitized debt last month after the company didn’t have enough available funds.

The Bottom Line: The owner of Fatburger went on a buying binge in 2020 and 2021. Five years later it is working furiously to generate cash and pay off debt. But the government shutdown is creating headaches.

The chairman of the owner of Fatburger, Fazoli’s and other chains is retaking his position as CEO now that the U.S. Department of Justice has dropped charges against the executive.

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