Fat Brands CEO under SEC investigation, company discloses
The owner of Fatburger and Johnny Rockets says the SEC is looking into loans made to Andy Wiederhorn and his family
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FAT Brands Inc. CEO Andrew Wiederhorn discusses the impact of labor shortages and supply chain issues on the restaurant industry.
Shares of Fat Brands tumbled as the company disclosed that CEO Andrew Wiederhorn is under investigation.
The U.S. Attorney’s Office in Central California, along with the Securities and Exchange Commission, is looking into the company’s 2020 merger with Wiederhorn’s investment firm, Fog Cutter Capital Group.
Gatlinburg, TN, USA - : Entrance of Johnny Rockets Diner on the Gatlinburg strip.
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Shares of the restaurant chain fell more than 22% following the news.
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| FAT | FAT BRANDS INC. | 7.46 | -0.04 | -0.53% |
The Securities and Exchange Commission is "formally seeking documents and materials concerning, among other things, the Company’s December 2020 merger with Fog Cutter Capital Group Inc., transactions between these entities and Mr. Wiederhorn, and compensation, extensions of credit and other benefits or payments received by Mr. Wiederhorn or his family" according to the regulatory filing.
Andrew Wiederhorn, CEO of FAT Brands (FOX)
The company is cooperating with the government regarding these matters, and the company is not currently a target of the U.S. Attorney's investigation, according to the filing.
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FAT Brands owns Fatburger, Johnny Rockets, Twin Peaks and Fazoli's, among others.
The U.S. Securities and Exchange Commission (SEC). Photographer: Andrew Harrer/Bloomberg via Getty Images (Photographer: Andrew Harrer/Bloomberg / Getty Images)