Twin Peaks and Smokey Bones secretly file for IPO

Featured brands Less than a week after federal authorities accused the restaurant company and its chairman, Andy Wiederhorn, of a $47 million bogus loan scheme, the company announced on Tuesday that it would be opening up restaurant chains Twin Peaks and Smokey Bones to new businesses. The company announced that it has secretly applied to go public through an initial public offering.

Last year, Fat Brands announced its intention to spin off Twin Peaks through an IPO. At the time, the company had already disclosed an investigation into Wiederhorn by the U.S. Securities and Exchange Commission.

On Thursday, Mr. Fat Brand, Mr. Wiederhorn and several others were criminally indicted by a federal grand jury in Los Angeles on charges of wire fraud, tax evasion and other charges related to the alleged scheme. In a separate civil suit filed Friday, the SEC accused the company and Wiederhorn of violations related to similar conduct.

Fat Brand and Wiederhorn have denied the charges through their lawyers.

Since its founding in 2005, Twin Peaks has grown to nearly 115 restaurants in the United States and Mexico. Phat Brands acquired the company in 2021. The sports bar chain, like Hooters, is known for its female staff’s revealing uniforms.

Smokey Bones is the newest addition to Fat Brands’ portfolio, which currently includes 18 chains.olive garden owner Darden Restaurants founded the barbecue chain in 1999, but later sold the brand. Phat Brands aims to acquire the company in September 2023 and convert more than half of its 61 company-owned restaurants to Twin Peaks locations.

“Our priority is to use the proceeds from any transaction to deleverage our balance sheet,” Wiederhorn said during the company’s first-quarter conference call on May 1 regarding a potential IPO. .

Wiederhorn owns 45% of Phat Brands’ common stock through Fog Cutter Holdings, according to FactSet.

The company’s stock price has fallen 9% this year, reducing its market value to about $90 million.