A federal bankruptcy judge approved Fat Brands’ bankruptcy liquidation plan on Monday, court records show.
The approval of the liquidation plan is a major step toward closing out Fat Brands’ tumultuous bankruptcy saga. The restaurant conglomerate filed for Chapter 11 bankruptcy in January after building up a mountainous $1.3 billion debt through a spree of acquisitions lasting several years.
Some of the company’s creditors sought to force out Andrew Wiederhorn, Fat’s CEO and board chair, after an unapproved stock sale. Wiederhorn eventually agreed to a temporary leave of absence in exchange for debtor-in-possession financing.
While a complex debt structure pushed Fat to bankruptcy, Wiederhorn also tangled with federal regulators from 2023 to 2025 over an allegedly fraudulent $47 million loan scheme. That process saw Wiederhorn depart and return as CEO, with his restoration following the U.S. Department of Justice’s decision to cease investigations. The company also appointed several Wiederhorn relatives to its board ahead of Wiederhorn’s 2023 departure.
In 2025, Fat tried to leverage an IPO for Twink Peaks, one of its strongest-performing brands, to help pay down its debt, the chain remained a subsidiary of Fat after the IPO. This effort failed to prevent Fat’s debt situation from worsening.
After filing for Chapter 11, Fat eventually entered a sales process that resulted in four buyers taking control of its restaurant brands. The largest sale — $595 million — gave a group of lenders control of the vast majority of Fat’s brands. The second largest, at $359 million, saw Twin Peaks separate itself entirely from Fat. The company also sold Hot Dog on a Stick to Amazing Brands for $8 million, and Elevation Burger to Tabco International Food Catering for $2.5 million.
