FAT Brands and Twin Hospitality, owners of Twin Peaks and Smokey Bones, enter Chapter 11.
In news that will impact two very popular chain restaurants in the U.S., FAT Brands Inc. and Twin Hospitality Group Inc., the parent company of Twin Peaks Restaurant and BBQ chain Smokey Bones, just filed for voluntary chapter 11 bankruptcy. Restaurants under the FAT Brands umbrella include Fazoli’s, Round Table Pizza, Johnny Rockets, Smokey Bones, and flagship brand Fatburger.
“Our dynamic portfolio of brands has demonstrated tremendous resilience in a challenging restaurant operating environment over the last few years,” Fat Brands says. “We are well positioned for long-term profitability and growth. The chapter 11 process will provide us with the opportunity to strengthen our capital structure to support our concepts and ensure they remain at the forefront of their sectors.”
FAT Brands
The statement from Twin Hospitality is similar in tone: “Twin Peaks has redefined the sports bar experience and built an iconic and highly profitable business. We are confident that the brand remains positioned for meaningful global expansion in the years to come. The chapter 11 process will enable us to strengthen our balance sheet and create financial flexibility to advance this growth.”
So what exactly happened? According to Nation’s Restaurant News (NRN), the bankruptcy filing comes days after Investor 352 Fund, the company’s largest bondholder, sued FAT Brands for $109 million and promised Class B Common stock tied to ownership of Twin Peaks.
The publication also reports that FAT Brands owed $1.26 billion to debtors in November 2025, leading to warnings even then of possible bankruptcy. “We are in active, constructive discussions with bondholders to prudently reshape parts of our balance sheet,” FAT Brands CEO Andy Wiederhorn said in an internal memo to franchisees, as reported by NRN. “These negotiations are part of a broader effort to strengthen the company financially so we can keep investing behind our brands, accelerate development, and support your business for the long term.”
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Twin Hospitality says both Twin Peaks and Smokey Bones will remain open with business as usual throughout the proceedings. “We plan to use this process to connect with key stakeholders around a value-maximizing plan and will act prudently to remain steadfast in upholding and protecting stakeholder interests. Our focus in this process remains providing quality service to our customers and supporting our franchise partners and the thousands of corporate and franchise employees.”
