--- title: "Bankruptcy court approves the sale of Fat Brands to multiple buyers" url: https://burnaze.com/article/70ddc7d5-a613-405d-b6bf-6ee0037c4310 source: "Restaurant Business" original_url: https://restaurantbusinessonline.com/financing/bankruptcy-court-approves-sale-fat-brands-multiple-buyers category: "Franchisors" industry: "Franchise Industry" segment: "Franchisors" topics: ["Finance & M&A","Regulation & legal"] published: 2026-05-20T12:13:34.000Z modified: 2026-10-31T14:57:06.651Z image: https://cdn.informaconnect.com/platform/files/public/2026-05/background/Fazolis%20shutterstock.jpg?VersionId=vE54.Ea2MhRirNmnLhY8Cyq8Dl4vkzTz --- # Bankruptcy court approves the sale of Fat Brands to multiple buyers **TL;DR:** A bankruptcy court approved the sale of Fat Brands to multiple buyers in a deal valued at nearly $1 billion. The company's assets were divided and sold to various entities, including TWINPKS Bid Co. and FBG Bid Co., with the rest of the company being sold to lenders. *originally published in Restaurant Business on 2026-05-20. [Read the original](https://restaurantbusinessonline.com/financing/bankruptcy-court-approves-sale-fat-brands-multiple-buyers).* ## Key facts - Fat Brands sold in 4 deals valued at nearly $1 billion - Twin Peaks sold for $359.5 million in debt conversion - FBG Bid Co. buys rest of Fat Brands for $595 million ## Story A bankruptcy court on Tuesday approved the sale of Fat Brands in four separate deals valued at nearly $1 billion, largely concluding a complex case marked by disputes, legal challenges and a fight for control that ultimately ousted the company’s founder. Two of Fat Brands’ 15 operating restaurant chains, Hot Dog on a Stick and Elevation Burger, are being sold in cash deals, for $8 million and $2.5 million, respectively. But the rest of the company is going to lenders. ## Asset division and sales Twin Peaks is being sold on its own to an entity known as TWINPKS Bid Co. for $359.5 million in debt that is being converted into equity. The rest of Fat Brands is being sold to another entity comprised of lenders, known as FBG Bid Co., for $595 million. That is also in the form of converted debt. The rest of Fat Brands includes Round Table Pizza, Johnny Rockets, Fazoli’s, Great American Cookies, Marble Slab Creamery, Pretzelmaker, Hurricane Grill and Wings, Buffalo’s Café, Native Grill and Wings, Yalla Mediterranean and Ponderosa & Bonanza. One chain, Smokey Bones, has been shut down. Fat Brands filed for bankruptcy with some $1.5 billion in debt, most of which came in the form of bonds sold to make several aggressive acquisitions in 2020 and 2021. ## Bankruptcy and disputes The sale of the company followed a mediated dispute between lenders, creditors and the company that threatened to derail the process. The groups reached a deal back in March that ultimately forced out Andy Wiederhorn, Fat Brands’ founder, and his family—though Wiederhorn was paid $5 million. Other disputes followed, however, including disagreements over unpaid management fees that threatened to further delay the sale. The different sides agreed to a settlement late last week, however, that paved the way for a sale. That agreement, which has also been approved by the court, provides $8 million in cash for the company’s estate and creates a process to sue former management, notably Wiederhorn, to provide some recovery for lenders. One such dispute involved a lender called Insight Capital, which had opposed the $8 million sale of Hot Dog on a Stick, saying it didn’t come close to the $20.6 million lien it had on the chain. But that lien came through what Fat Brands called a “cashless refinancing” just days before the company filed for bankruptcy. It’s a “textbook example of fraudulently-incurred obligations.” The buyer for Hot Dog on a Stick is called Amazing Brands, LLC. Tabco International Food Catering, a company out of Kuwait, has agreed to buy Elevation Burger. Round Table Pizza does have a “back up bid” of $44 million in cash to DC Restaurant Group, LLC, but that sale would only take place if the larger deal for most of Fat Brands collapses. *Members help make our journalism possible. Become a Restaurant Business member today and unlock exclusive benefits, including unlimited access to all of our content. Sign up here.* ## Entities - Finance (sector) - Restaurant Business (publication) - Fat Brands (company) - Andy Wiederhorn (person) - restaurant chains (topic) - Amazing Brands (company) - bankruptcy sale (topic) - FBG Bid Co. (investor) - FBG Bid Co. acquisition of Fat Brands (deal) - debt conversion (topic) - Tabco International Food Catering (company) - TWINPKS Bid Co. (investor) --- Originally reported by Restaurant Business (https://restaurantbusinessonline.com/financing/bankruptcy-court-approves-sale-fat-brands-multiple-buyers). Summarized by Burnaze (https://burnaze.com/article/70ddc7d5-a613-405d-b6bf-6ee0037c4310).