A bankruptcy court approved the sale of various Fat Brands’ assets through a number of transactions, according to court documents filed on Tuesday and listed on Fat’s restructuring website.
Hot Dog on a Stick will be sold to Amazing Brands for $8 million, while Elevation Burger will be sold to Tabco International Food Catering for $2.5 million. Amazing Brands is owned by Stephen Siegel, who created the company in 2008, according to its website. The company consists of Pinkbox doughnuts, Siegel Bagelmania and Piero’s Italian Cuisine. Tabco is a Kuwait-based foodservice company, according to its LinkedIn page.
Twin Peaks is being sold to an entity known as TWNPKS Bid Co. in a $359 million debt transaction to be converted into equity, according to court documents.
Fat Brands’ remaining businesses — Round Table Pizza, Johnny Rockets, Fazoli’s, Great American Cookies, Marble Slab Creamery, Pretzelmaker, Hurricane Grill and Wings, Buffalo’s Cafe, Native Grill and Wings, Yalla Mediterranean and Ponderosa & Bonanza — will be sold to a group of lenders known as FBG Bid Co. in a debt transaction worth $595 million.
The company closed its remaining Smokey Bones locations in April, according to multiple media reports.
The transactions total nearly $1 billion, significantly less than the roughly $1.4 billion in debt the company had around the time of its Chapter 11 bankruptcy filing in January. Alongside its complicated debt situation that follows years of acquisitions, Fat Brands faced challenging economic conditions that impacted operations, as well as costly litigation.
The court approval also ends a monthslong back and forth between creditors and Fat Brands, during which creditors accused former CEO Andy Wiederhorn of improperly undertaking a stock sale of Twin Hospitality without court approval. Wiederhorn agreed to a leave of absence as CEO for the remainder of the bankruptcy process, but was still authorized to bid for Fat Brands’ entities. It is unclear if he is behind any of the entities acquiring Twin Peaks or the remaining companies, as individuals are not listed in court documents.
