When a retailer owns a number of manufacturers, it generally has to determine the place to allocate assets. That state of affairs will get much more difficult when its mum or dad firm recordsdata for chapter.
On this case, FAT Manufacturers, which filed for Chapter 11 chapter safety on Jan. 26, had already determined to allocate assets to its Twin Peaks sports activities bar idea as a substitute of its Smokey Bones Barbecue restaurant chain.
In September, Twin Hospitality, a sister firm to FAT Manufacturers, which has additionally filed for Chapter 11 chapter, shared the choice to shut 15 underperforming Smokey Bones places. It additionally detailed a plan to transform 19 Smokey Bones places into Twin Peaks places.
Twin Hospitality CEO Kim Boerema defined these choices in a press launch.
“Now we have launched a full spending assessment throughout each manufacturers to get rid of inefficiencies, uncover synergies, and refocus on high-return initiatives. I’ve additionally centered on reviewing the Smokey Bones portfolio, closing underperforming models, figuring out robust candidates for conversion, and supporting worthwhile places that may stay Smokey Bones,” she shared.
Now, with Chapter 11 filings forcing additional austerity, Smokey Bones will shut one other 15 places.
FAT Manufacturers/Twin Hospitality Chapter 11 fast details
FAT Manufacturers Inc. and its affiliate Twin Hospitality have filed for Chapter 11 chapter safety within the U.S. Chapter Court docket. The filings are publicly accessible by way of Pacer, the federal court docket digital information system.
- FAT Manufacturers, Inc., Southern District of Texas, Case #26‑10931, filed January 26, 2026.
Reported property and liabilities: $1 billion-$10 billion varyFull petition and schedules accessible on PacerMonitor
Full petition and schedules accessible on PacerMonitor, together with particulars on debt, restaurant closures, and Chapter 11 restructuring plans
- FAT Manufacturers Inc., the mum or dad of greater than 18 restaurant ideas together with Fatburger, Johnny Rockets, and Spherical Desk Pizza, filed for voluntary Chapter 11 chapter safety within the U.S. Chapter Court docket for the Southern District of Texas on January 26, 2026.
- The corporate mentioned the Chapter 11 course of will let it deleverage its stability sheet, bolster its capital construction, and maximize worth for stakeholders whereas persevering with to function its portfolio of greater than 2,200 places worldwide.
- FAT Manufacturers plans to maintain its eating places open throughout restructuring, with its Nasdaq-traded securities anticipated to commerce with a “Q” suffix to indicate chapter proceedings.
- In its chapter submitting, the corporate reported property and liabilities each within the vary of $1 billion to $10 billion, a typical broad bracket in Chapter 11 disclosures.
- FAT Manufacturers has been overwhelmed by debt tied to securitized borrowings; its whole debt was estimated at round $1.5 billion to $1.58 billion resulting from leveraged acquisitions and financing methods.
- Prior SEC filings famous the corporate carried roughly $1.6 billion in debt, a heavy burden that contributed to its Chapter 11 transfer.
Sources: PacerMonitor, FAT Manufacturers press launch
Smokey Bones had greater than 100 places at its peak.
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Smokey Bones
After this latest spherical of shutdowns, Smokey Bones reveals 20 places remaining on its web site. The model had about 120 places at its peak and nonetheless operated 60 when FAT Manufacturers bought the restaurant idea.
In its preliminary chapter announcement, the corporate didn’t share any plans to shut eating places.
Extra Eating places
- Taco Bell and KFC work on simplifying their eating places
- Chick-fil-A making main change to 425 eating places nationwide
- Bankrupt beer and pizza restaurant chain closes places
- Restaurant chain famed for impolite waiters closes a number of places
“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,” said Andy Wiederhorn, CEO of FAT Brands. “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.”
In later court filings, which can be found on PacerMonitor, the company shared plans to close 14 Smokey Bones locations nationwide, along with two Johnny Rockets and five Yalla Mediterranean locations, according to Fast Company.
Smokey Bones closures
It’s unclear when these locations will close, but none are listed on the company’s website, suggesting they may have shut down already. The author, a regular customer of two Florida locations shuttered as part of earlier closures, can confirm that the shutdowns were sudden, with no notice provided to customers.
Florida
- Casselberry: 1430 State Road 436
- Fort Lauderdale: 6500 N. Federal Hwy
- Plantation: 809 South University Drive
Georgia
- Buford: 3333 Buford Drive, Ste. VB01C
Illinois
- Rockford: 6690 E. State Street
Massachusetts
- Stoughton: 301 Technology Center Drive
Michigan
- Grand Rapids: 4875 28th Street SE
- Utica: 45001 Schoenherr Road
Ohio
- Columbus: 3939 Mose Crossing
- Maumee: 512 West Dussel Drive
Pennsylvania
- North Wales: 252 Montgomery Mall
- Wilkes-Barre: 265 Mundy Street
Virginia
- Newport News: 12541 Jefferson Avenue
- Woodbridge: 2601 Prince William County Parkway
Smokey Bones has struggled
FAT Brands/Twin Hospitality made the decision to convert some Smokey Bones locations into Twin Peaks for sound financial reasons, as the initial results have proven positive.
“Two of the conversions have been accomplished and are already producing common unit volumes of about $7.8 million in comparison with the $3.5 million they generated as Smokey Bones,” Restaurant Dive shared.
Smokey Bones’ size and operational similarity to Twin Peaks helped make the decision to convert some locations.
“Changing Smokey Bones places to Twin Peaks gives a big return on funding as altering a standing restaurant with comparable sq. footage and actual property draw like Smokey Bones cuts out a couple of 12 months and a half of development time,” mentioned FAT Manufacturers CFO Ken Kuick in a press launch. “Twin Peaks is our fastest-growing concept, producing strong and growing average-unit volumes.”
The price of working Smokey Bones could in the end doom the model.
“Though profitable, considering the menu is highly focused on entrees such as steak and brisket, which have faced steep price increases, this year could be the end of Smokey Bones,” Restaurant Dive reported.
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