Another one bites the dust.
It was just last March when Hooters (the casual dining establishment that specializes in wings) waived the white flag and filed for Chapter 11 bankruptcy. If you aren’t familiar with that particular bankruptcy filing, you might remember that Red Lobster did something similar a couple of years back, which led to the seafood brand closing down a number of additional locations and restructuring their debt in order to stay afloat financially.
Now, Twin Peaks (basically a mountain-lodge-themed Hooters) is doing the same.
They say that even the strongest of empires eventually fall. That’s certainly ringing true today, as the news of Twin Peaks’ parent company – FAT Brands – filing for bankruptcy hit the internet. The casual dining industry used to be able to support both Hooters and Twin Peaks… and now both are having to get creative to avoid shuttering entirely.
The news isn’t all that surprising considering it was back in November when it was discovered that FAT Brands owed over $1.25 billion to debtors. FAT Brands made it known that they didn’t have the liquidity to immediately pay off those loans, so it was rather evident from that point on that they’d have no other choice but to file for Chapter 11.
Like Hooters, Twin Peaks restaurants have struggled with a decline in customers and liquidity issues in recent years. More and more people are staying in to eat, and if they do go out, they might be choosing dining options that are more “family friendly.” Obviously, a place like Twin Peaks isn’t exactly the spot you go to after church.
FAT Brands (just a horrible name for a restaurant franchise and company now that I’ve written it out a handful of times) figured that restructuring options and seeking out strategic alternatives was in the best interest of the company and it’s shareholders. They also stated that even though they are filing for bankruptcy, they expect day-to-day operations at each of the establishments underneath their umbrella (Fazoli’s, Round Table Pizza, Johnny Rockets, Smokey Bones, among others) will continue.
Regardless, people online are distraught hearing that yet another “wing” restaurant is in trouble:
They must be under *mountains* of debt.
— Kim Boyle (@KimBoyle15390) January 27, 2026
Nooooo 😔 pic.twitter.com/AWyDmOqoMI
— TEXAS OUTLAW (@TEXOUTLAW1) January 27, 2026
not another one. 💔
— 𝒾𝓈𝓃𝓉𝒹𝒶𝓋𝑒𝑜𝓃𝑒 (@IsntDaveOne) January 27, 2026
Just had lunch there… Tried doing my part.
— Jim Bowie (@Jim4Au) January 27, 2026
Me and the boys getting ready to save The Peaks pic.twitter.com/UeIiXclZwM
— Kenobi’s Cousin Nem (@viralphantem) January 27, 2026
First Hooters, now Twin Peaks…
Sorry, fellas 😢 https://t.co/V836c4mliW
— Banner Freeborn 🇺🇸 (@BannerFreeborn) January 27, 2026
The phrase “recession indicator” gets thrown around a lot. If Hooters and Twin Peaks are both going down… that might be the recession indicator above all other recession indicators.
