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Stock impact report

FAT Brands pushed to the brink by legal storm and mounting debt [Yahoo! Finance]

FAT Brands Inc. - Class B (FATBB) 
Company Research Source: Yahoo! Finance
In August 2020, FAT Brands — then known as the parent company of Fatburger, Hurricane Grill & Wings, and Ponderosa and Bonanza Steakhouses — kicked off its acquisition spree with the purchase of Johnny Rockets . Five years and 14 brand acquisitions (plus one sale) later, the company has grappled with numerous legal and financial obstacles, including an SEC investigation, a recently dropped federal investigation into alleged financial fraud, two franchisee lawsuits accusing the company of mismanaging funds, and over $1.26 billion in debt that has been declared immediately due. This week, the company faced the threat of being delisted from the Nasdaq stock exchange due to its stock price consistently remaining below $1. FAT Brands disclosed in an SEC filing that it does not have sufficient liquidity to meet its debt obligations, acknowledging that bankruptcy could be on the horizon. Along with over $1.26 billion in debt, FAT Brands also reported in its most recent 10Q filing that the Show less Read more
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