Fat Brands and Twin Hospitality will be delisted from the Nasdaq, effective Feb. 4, according to separate Friday filings with the U.S. Securities and Exchange Commission. The Listing Qualifications Staff of the Nasdaq Market informed the parent company of Fatburger and Round Table Pizza on Jan. 28 about its impending action.
The notification came days after Fat Brands and its subsidiary Twin Peaks commenced Chapter 11 bankruptcy proceedings following the accumulation of over $1 billion in debt over years of brand acquisitions. Fat’s creditors turned up the heat in the last few months, demanding payment of the debt, but Fat didn’t have enough cash on hand to fulfill these demands.
Nasdaq determined delisting was necessary because of the bankruptcy and related public interest concerns, as well as concerns related to residual equity interest with existing listed securities holders and concerns about Fat’s ability to maintain compliance to remain listed on the Nasdaq. Fat previously received delisting warnings last year after its stock price slid below $1 for an extended period.
Following its delisting, Fat will trade on the Pink Limited Market, which is operated by the OTC Markets Group. The OTC Markets regulates stock market trading for over 12,000 U.S. and global securities, according to its website.
The Pink Limited Market only allows broker-dealers to publicly quote securities with limited to no issuer involvement, meaning stock can be more difficult to sell. Companies in the market don’t certify their compliance related to reporting standards and have limited availability of disclosures or financial information.
The market typically is “a less liquid market for existing and potential holders,” Fat said in the filing.
“The Company can provide no assurance that any of the Securities will continue to trade on this market or whether broker-dealers will continue to provide public quotes of the Securities on this market,” Fat said.
Fat originally went public in 2017 and grew to a 19-brand portfolio by acquiring relatively small brands across several years. In 2025, the heavily-indebted company spun off Twin Peaks and Smokey Bones into Twin Hospitality with an IPO to help raise equity to pay down its debt.
