Fat Brands Sells Johnny Rockets to Red Zone Capital
Ticker: FABTQ · Form: 8-K · Filed: Jul 10, 2024 · CIK: 1705012
Sentiment: neutral
Topics: divestiture, acquisition, debt-reduction, strategy
Related Tickers: FAT
TL;DR
FAT selling Johnny Rockets to Red Zone Capital, aiming to cut debt and streamline operations.
AI Summary
Fat Brands Inc. announced on July 9, 2024, that it has entered into a definitive agreement to sell its wholly-owned subsidiary, Johnny Rockets Group, Inc., to Red Zone Capital LLC. The transaction is expected to close in the third quarter of 2024. This divestiture is part of Fat Brands' strategy to streamline its portfolio and focus on its core brands.
Why It Matters
This sale allows Fat Brands to reduce debt and focus on its more profitable brands, potentially improving its financial health and operational efficiency.
Risk Assessment
Risk Level: medium — The sale of a subsidiary can indicate financial pressures or a strategic shift that may carry inherent risks in execution and future performance.
Key Players & Entities
- Fat Brands Inc. (company) — Seller
- Johnny Rockets Group, Inc. (company) — Subsidiary being sold
- Red Zone Capital LLC (company) — Buyer
- July 9, 2024 (date) — Date of agreement
- third quarter of 2024 (date) — Expected closing period
FAQ
What is the name of the subsidiary Fat Brands Inc. is selling?
Fat Brands Inc. is selling its wholly-owned subsidiary, Johnny Rockets Group, Inc.
Who is the buyer of Johnny Rockets Group, Inc.?
The buyer is Red Zone Capital LLC.
When was the definitive agreement for the sale entered into?
The definitive agreement was entered into on July 9, 2024.
When is the sale of Johnny Rockets expected to close?
The transaction is expected to close in the third quarter of 2024.
What is the stated reason for this divestiture?
The divestiture is part of Fat Brands' strategy to streamline its portfolio and focus on its core brands.
Filing Stats: 484 words · 2 min read · ~2 pages · Grade level 9.8 · Accepted 2024-07-10 12:32:22
Key Financial Figures
- $0.0001 — stered Class A Common Stock, par value $0.0001 per share FAT The Nasdaq Stock Market L
- $0.171875 — calendar month ending July 31, 2024 of $0.171875 per share. The cash dividend is payable
Filing Documents
- fat-20240709.htm (8-K) — 26KB
- 0001628280-24-031551.txt ( ) — 202KB
- fat-20240709.xsd (EX-101.SCH) — 3KB
- fat-20240709_def.xml (EX-101.DEF) — 16KB
- fat-20240709_lab.xml (EX-101.LAB) — 30KB
- fat-20240709_pre.xml (EX-101.PRE) — 17KB
- fat-20240709_htm.xml (XML) — 6KB
01 Other Events
Item 8.01 Other Events. Effective July 9, 2024, the Board of Directors of FAT Brands Inc. (the "Company") declared a monthly cash dividend on the Company's 8.25% Series B Cumulative Preferred Stock ("Series B Preferred Stock") for the calendar month ending July 31, 2024 of $0.171875 per share. The cash dividend is payable on August 20, 2024 to holders of record of the Series B Preferred Stock as of the close of business on August 9, 2024.
SIGNATURES
SIGNATURES Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized. FAT Brands Inc. Date: July 10, 2024 /s/ Kenneth J. Kuick Kenneth J. Kuick Chief Financial Officer