Breastaurant news
Texas restaurant Twin Peaks rises out of bankruptcy with new owners
Twin Peaks is climbing its way back.
Six months after filing for bankruptcy, the Addison-based Twin Peaks restaurant chain is getting a second chance at success.
In a Monday, June 15 press release, Twin Peaks said it has separated from its parent company, FAT Brands, and now operates as a standalone private company called Summit Twin Hospitality I LLC.
Summit Acquisitions LLC, a group of the brand’s bondholders — high-priority bankruptcy creditors including Twin Peaks franchisees 3BMgmnt Inc., JEB Food Group, and Operadora 2 Montes — has assumed management of the brand and is poised to eventually buy the chain.
“This transition gives our team the foundation we’ve needed to execute on the vision we’ve always had for this brand,” says Roger Gondek, president and chief operating officer of Twin Peaks, in the release. “We have a strong system, exceptional operators, and enviable guest loyalty, and now we have the financial footing to match. The best days for Twin Peaks are ahead.”
In May, a business known as TWNPKS Bid Co. — backed by bondholders — acquired Twin Peaks in a $359 million debt-to-equity deal approved by a bankruptcy judge in Houston.
Five years ago, FAT Brands bought Twin Peaks from New York City investment firm Garnett Station Partners for $300 million. Last year, Twin Peaks became a publicly traded company after its spinoff from FAT Brands, which remains the chain’s biggest stockholder.
Twin Peaks enters its new era with more than 115 restaurants in the U.S. and Mexico, including five restaurants in Houston and a total of 31 statewide. More restaurants are on the way, including franchised locations in Brownsville, Laredo, and South Padre Island.
Twin Peaks, founded in Lewisville in 2005, competes with Bombshells, Hooters, Twisted Kilt, and other “breastaurant” chains.
According to the press release, Twin Peaks’ executive team remains intact, and no layoffs are planned. In fact, the company plans to add employees as its store count grows.
In conjunction with FAT Brands’ bankruptcy case, a business called FBG Bid Co. said Tuesday, June 16 that it purchased 13 restaurant brands owned by FAT Brands for about $595 million. The acquisition includes chains like Fatburger, Fazoli’s, Great American Cookies, Johnny Rockets, Marble Slab Creamery, and Ponderosa and Bonanza steakhouses, but excludes Twin Peaks.
FAT Brands and Twin Peaks filed for Chapter 11 bankruptcy protection in January with plans to reorganize the businesses. At the time of the bankruptcy filing, FAT Brands owed about $1.4 billion in debt that it was unable to cover.
