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FAT Brands Sets April 28 Auction for Chain Sales, Eyes May 4 Closing

The court-run process seeks value recovery for a highly leveraged company with roughly $2.1 million in unrestricted cash.

Overview

  • Debtors obtained court approval to market and sell all, substantially all, or any portion of FAT Brands’ assets and restaurant brands through a competitive bidding process.
  • Key dates were set: April 3 for indications of interest and stalking-horse bids, April 28 for the auction, and May 4 as the targeted closing.
  • At least 120 potential buyers have been contacted, and a special committee is overseeing the sale to promote fairness and transparency.
  • CEO Andrew Wiederhorn is restricted from accessing non-public bid information except for any bid he submits, as creditors press for a breakup of the portfolio.
  • Operations are expected to continue across more than 2,200 locations during Chapter 11, with shares delisted from Nasdaq to trade over the counter after the January 26 filing and a prior $1.26 billion debt demand.