Fat Brands' lenders demand immediate payment on $1.3B in debt. Fat Brands went on a buying spree in 2020 and 2021, acquiring nearly $1 billion in restaurant chains including Global Franchise Group, the owner of brands like Hot Dog on a Stick and Round Table Pizza, along with Fazoli’s, Twin Peaks and Johnny Rockets. To make these deals, the company used a complicated financing instrument known as a whole business securitization. Securitizations are popular financing instruments in the restaurant industry, particularly among franchised companies. FAT Brands Inc. received default notices under its base indentures for five special purpose financing subsidiaries. On November 17, 2025, the company received acceleration notices from UMB Bank for four of these subsidiaries, declaring the outstanding principal and accrued interest immediately due. The total principal outstanding is approximately $1,256.5 million, with accrued interest of $43.2 million. The company has struggled with weak sales across its restaurant chains and financial losses. Same-store sales at its restaurant chains collectively declined 3.5% last quarter, its eighth straight decline. The company also reported a loss of $58 million. -GlobeandMail / Restaurant Business #cracksincredit