In these hard economic times we are seeing more and more how it affects the restaurant industry. Today, two Fatburger subsidiaries have filed for Chapter 11. Fatburger Restaurants of California and Fatburger Restaurants of Nevada have filed for reorganization in U.S. Bankruptcy Court yesterday.
The two restaurant groups operate about 32 stores. According to Fatburger’s website (as of today) there are about 49 stores in California and Nevada. The other 17 or so stores must be owned by independent franchisees.
No dates and no closures have been announced. The two restaurant groups will use this time to renegotiate leases with landlords and allow them the time to come up with a plan to return to profitability.
Fatburger Corporate and it’s parent company Fog Cutter Capital Group has been going thru some challenging times of their own which is causing hardships on the restaurant groups and franchisees. Fog Cutter has been confronted with multiple loan defaults.
If any store closures are announced, we’ll bring it to you right here!