Archive · 29 Jan 2026
Lenders Accuse FAT Brands CEO of Misusing Funds
A group of lenders to FAT Brands Inc., a company that owns many restaurant chains like Fatburger and Johnny Rockets, have accused the CEO, Andrew Wiederhorn, of taking company money for his own personal use.
They say he spent over $200 million on things like vacations, jewelry, and private jets.
The company has filed for bankruptcy, and the lenders want a judge to appoint someone else to run the company because they don't trust Wiederhorn.
FAT Brands says they are struggling with debt and inflation, but the lenders say the company has enough money and that Wiederhorn is to blame for the financial troubles.
This comes after federal prosecutors dropped criminal charges against Wiederhorn earlier this year.
Lenders allege FAT Brands CEO Andrew Wiederhorn misappropriated $200 million for personal use.
The company has filed for Chapter 11 bankruptcy, with lenders demanding an independent trustee.
FAT Brands operates 2,200 restaurant locations under 18 brands, including Fatburger and Johnny Rockets.
The company cites unsustainable debt and inflation as reasons for bankruptcy, while lenders dispute this.
Federal prosecutors dropped criminal charges against Wiederhorn earlier this year, but lenders cite past legal issues.
- Who
- Andrew Wiederhorn, CEO of FAT Brands Inc., and a group of lenders
- What
- Allegations of misappropriation of funds and bankruptcy filing
- When
- Chapter 11 filed earlier this week, court appearance scheduled for Wednesday
- Where
- United States, with restaurant locations across the country
- Why
- Lenders allege Wiederhorn used company funds for personal expenses and to cover legal fees, while the company cites unsustainable debt and inflationary pressures
- Company
- FAT Brands Inc.
- CEO
- Andrew Wiederhorn
- Debt
- $1.2 billion
- Alleged Misappropriated Funds
- $200 million
- Restaurant Locations
- 2,200
- Brands
- Fatburger, Johnny Rockets, Twin Peaks
- Bankruptcy Court Appearance
- Scheduled for Wednesday