Less than a week after federal authorities charged the restaurant company and its chair Andy Wiederhorn for an alleged $47 million bogus loan scheme, Fat Brands announced on Tuesday that it had confidentially filed to take its Twin Peaks and Smokey Bones restaurant chains public through an initial public offering.
Last year, Fat Brands declared its plan to use an IPO to split out Twin Peaks. By then, the business had already made public that Wiederhorn was the subject of an inquiry by the US Securities and Exchange Commission.
A federal grand jury in Los Angeles criminally charged Fat Brands, Wiederhorn, and many other individuals on Thursday for wire fraud, tax evasion, and other offenses pertaining to the purported conspiracy. The SEC charged in a different civil lawsuit submitted on Friday.
Wiederhorn and the business were both found in violation for the same behavior.
Through an attorney, Wiederhorn and Fat Brands have refuted the allegations.
Twin Peaks has expanded to around 115 restaurant locations in the United States and Mexico since its beginning in 2005. In 2021, Fat Brands acquired the business. Like Hooters, the sports bar franchise is well-known for its female employees' skimpy outfits.
Currently, Fat Brands has eighteen restaurants in its portfolio, with Smokey Bones being the most recent addition. The company that owns Olive Garden, Darden Restaurants, launched the barbeque business in 1999 but eventually sold the name. It was purchased by Fat Brands in September 2023, with the intention of turning over half of its 61 corporately owned eateries into Twin Peaks outlets.
"Using the proceeds is our top priority." During the company's first-quarter conference call on May 1, Wiederhorn discussed the possible IPO. "from any transaction to deleverage the balance sheet."
According to FactSet, Wiederhorn holds 45% of the common shares of Fat Brands via Fog Cutter Holdings.
This year, the company's shares have dropped 9%, bringing its market worth down to around $90 million.
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