Fat Brands, Twin Hospitality Delisted from Nasdaq as Bankruptcy Fallout Deepens
This analysis is based on original reporting from Restaurant Dive. For ongoing industry coverage, subscribe to the free Restaurant Dive newsletter.
In a significant blow to its corporate standing, Fat Brands Inc. and its affiliate Twin Hospitality have been formally delisted from the Nasdaq Stock Market, regulatory filings confirmed Friday. The move, effective February 4, strips the parent company of iconic chains like Fatburger and Round Table Pizza of its prestigious listing on a major exchange.
The delisting decision, communicated by Nasdaq on January 28, follows swiftly on the heels of the company's Chapter 11 bankruptcy filing. That proceeding was triggered by a crushing debt load exceeding $1 billion—a burden accumulated during an aggressive, years-long acquisition spree that ultimately proved unsustainable as creditors tightened the screws.
Nasdaq cited the bankruptcy, associated public interest concerns, and doubts about the company's ongoing ability to meet listing standards as grounds for the action. This culminates a period of decline for Fat Brands, which had previously been warned last year after its stock price languished below the $1 threshold for too long.
Post-delisting, the company's shares will find a new—and far less liquid—home on the Pink Limited Market, an over-the-counter platform operated by OTC Markets Group. This venue, which hosts thousands of securities, operates with minimal issuer involvement and lighter regulatory requirements, often resulting in scarcer information for investors and greater difficulty in trading shares.
"The Company can provide no assurance that any of the Securities will continue to trade on this market or whether broker-dealers will continue to provide public quotes," Fat Brands stated bluntly in its SEC filing, acknowledging the heightened risk for shareholders.
The fall marks a stark reversal for a company that went public in 2017 with ambitions to build a sprawling restaurant empire. Its strategy of scooping up smaller brands backfired, leading to the 2025 creation and IPO of Twin Hospitality—housing Twin Peaks and Smokey Bones—as a desperate maneuver to generate equity and manage its spiraling obligations.
Industry Voices React
"This is a cautionary tale about leverage and growth at any cost," said Michael R. Chen, a portfolio manager at Horizon Capital Advisors. "The move to OTC severely limits institutional investment and transparency, making recovery a much steeper climb."
Lisa Hammond, a former franchisee of a Round Table Pizza location, expressed disappointment: "It's sad to see these beloved community brands caught up in such high-finance turmoil. You worry about the long-term support for the individual operators on the ground."
Offering a sharper critique, David Feldstein, a financial blogger known for his commentary on corporate distress, did not mince words: "This delisting is the financial equivalent of being relegated to the minors. It's the direct result of a reckless acquisition binge funded by debt, with executives playing with fire while franchisees and small investors get burned. The OTC market is where liquidity goes to die."
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