Fat Brands CEO under SEC investigation, company discloses
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 US 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.
GET FOX BUSINESS ON THE GO BY CLICKING HERE
Shares of the restaurant chain fell more than 22% following the news.
| Ticker | Security | Cargo | Change | Change% |
|---|---|---|---|---|
| FAT | FAT BRANDS INC. | 8.14 | -2.42 | -22.92% |
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 US Attorney’s investigation, according to the filing.
CLICK HERE TO READ MORE ON FOX BUSINESS
FAT Brands owns Fatburger, Johnny Rockets, Twin Peaks and Fazoli’s, among others.
The US Securities and Exchange Commission (SEC). Photographer: Andrew Harrer / Bloomberg via Getty Images (Photographer: Andrew Harrer / Bloomberg / Getty Images)
