FAT Brands Inc.

Financing

Fat Brands gets another demand for debt payment

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.

Financing

In Fat Brands, another company using securitization financing runs into problems

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.

The U.S. Department of Justice filed a motion to dismiss all charges against the chairman of the franchise restaurant brand operator. He had been charged in a $47 million fake loan scheme.

Working Lunch: This week's political podcast features a conversation with Andy Wiederhorn, founder and chair of Fat Brands, who shares the challenges the trade war will create for franchise operators, their supply chain and plans for growth.

Fat Brands, which owns a host of franchised concepts, said it will start accepting Bitcoin as payment for franchise royalties.

Operators filed a lawsuit against the chicken wing chain and parent company Fat Brands, accusing them of underfunding the marketing department and damaging the brand.

The owner of Fatburger and Johnny Rockets filed a registration statement with the SEC to spin off 5% of shares in Twin Peaks to existing shareholders. The casual-dining chain will become an independent, publicly traded company.

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