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Fatburger going under?

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Not that it's the greatest burger in town or anything, but I was surprised to learn that Fatburger is in financial trouble. To be honest, it's probably been about five years since I've even eaten there, but I have lots of fond college-era memories of the Kingburger with cheese. They'll be missed if they close up shop. Article below:

Fatburger Restaurants of California and Fatburger Restaurants of Nevada, both subsidiaries of Fatburger Corp, filed for Chapter 11 in April. According to the Wall Street Journal, the parent company was not included in the filing, but the two subsidiaries accounted for 72% its total revenue in 2008.

The bankruptcy came under pressure from G.E. Capital Business Asset Funding, which Fatburger owned nearly $3.9 million for defaulted loans.

The company's 90 franchise owners are waiting to see what happens next.

http://finance.yahoo.com/career-work/...

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  1. Filing for chapter 11 does not necessarily mean the subsidiaries are "going under" (see GM). It just means it needs either (1) time to renegotiate its debts (2) sell assets and/or (3) reorganize with some combo of Nos. 1 and 2.

    1 Reply
    1. re: ipsedixit

      Personally, I've always ordered the #1 Combo.

    2. Indeed, Chapter 11 means they intend to stay in business. Or at least try to.

      1. I think that in a market with Tommy's and In 'n' Out, that Fatburger expanded too quickly.

        And, there are a good number of people who just aren't going to eat at a place called Fatburger. That might have been a good name decades ago, but it's a liability these days.

        6 Replies
        1. re: BeenThereAteThat

          Such people have obviously never encountered a Double Fat on the chargrill.

          1. re: ozhead

            Exactly. You've got to get them into the restaurant before they can rave about the food.

              1. re: Bandini

                Actually, given that it's 2009, that would be a pretty good marketing ploy.

          2. re: BeenThereAteThat

            Hmm. So do you think I should pick a new name for my new venture, "Morbidly Obese Cakes and Cookies"?

            1. re: Bjartmarr

              Why beat around the bush?

              Just call it, "Death by Fat"

          3. I think the Fatburger in Jersey City, has been out of business for about a year. I never seen anybody in there and in 5 years I think my office ordered from their one.

            1. There was a Fatburger in my local mall (Hudson Valley, NY) and they closed down about a year ago.
              I didn't care for their food very much.