Fatburger's parent company isn't letting a federal investigation of its chairman stop its IPO

The company's former CEO, Andy Wiederhorn, was charged with fraud just last week

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Fatburger.
Fatburger.
Image: Getty Images North America (Getty Images)
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Fatburger’s parent company Fat Brands is looking to slim down its business. The company has “confidentially” filed for an IPO of its Twin Peaks and Smokey Bones restaurant brands, it said in a statement on Tuesday.

In 2023, Fat Brands tried to take its Twin Peaks chain public but was dealing with a federal investigation in which its former CEO Andy Wiederhorn was being investigated for fraud. Weiderhorn, who stepped down as chief executive last year, remained the company’s chairman.

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But just last week, the Justice Department charged Weiderhorn with fraud for the alleged scheme to conceal $47 million from his own shareholders.

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Fat Brands, which owns 18 brands including Fat Burger and Johnny Rockets, said that the potential transaction could be affected by certain conditions, including the “effectiveness of the registration statement” and final approval from Fat Brands’ board of directors.

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Shares of Fat Brands nudged up slightly during afternoon trading hours.