Hot GFG LLC, previously listed as a 10 percent owner of Fat Brands, Inc. (NASDAQ: FAT), completed a sale of its remaining Class A common stock on January 30, 2026, disposing of 1,794,766 shares for aggregate proceeds of $485,843. According to filing details, the Class A shares were transacted at prices spanning $0.2577 to $0.3001 per share.
Following the disposition, Hot GFG LLC no longer holds any Class A common stock in Fat Brands. The entity does, however, retain a position in the company's Series B Cumulative Preferred Stock, holding 1,544,623 shares of that series.
The sale comes against the backdrop of severe equity depreciation at Fat Brands. The stock has declined 94.7% over the last year and is trading around $0.17, a level below the prices at which Hot GFG LLC executed its Class A sales.
Procedural filings show Rachel Serruya signed the Form 4 on behalf of Hot GFG LLC and also signed separately as a reporting owner, indicating her dual role in the disclosure.
Independent data cited in the filings characterizes Fat Brands as carrying a significant debt load and assigns it a weak financial health score of 1.17, based on InvestingPro metrics. The same analysis referenced in the filings notes that Fat Brands may be undervalued at current market prices and points readers to an available Pro Research Report with additional ProTips and financial metrics for the company.
Operationally and legally, Fat Brands is navigating substantive distress. The company has filed for Chapter 11 bankruptcy protection in Texas as part of a debt restructuring effort. The filing includes its subsidiary, Twin Hospitality Group, which also sought bankruptcy protection in the United States Bankruptcy Court for the Southern District of Texas. Fat Brands is continuing operations as a debtor-in-possession while it proceeds through the court-supervised process.
Concurrently, Fat Brands has received multiple notices from Nasdaq asserting non-compliance with listing standards, specifically the minimum bid price requirement for its Class A common stock. The company has been given until July 7, 2026, to return to compliance by recording a closing bid price of at least $1.00 for ten consecutive business days.
Corporate governance activity continued during the period: at its 2025 Annual Meeting of Stockholders, all 13 board nominees were elected.
On the creditor front, Fat Brands disclosed receipt of a notice of acceleration from UMB Bank demanding repayment of $158.9 million in outstanding principal and accrued interest on secured notes issued by its subsidiary FB Resid Holdings I, LLC. The company has stated it currently lacks sufficient funds to satisfy those amounts.
Collectively, the insider sale, the company's Chapter 11 filing, Nasdaq non-compliance notices, and the acceleration notice on secured debt outline a complex restructuring landscape for Fat Brands that will unfold under court supervision and creditor negotiations.