Major Hooters Competitor Declares Bankruptcy on Two Stores Amid $12 Million Lawsuit

There is a niche space in the restaurant business that has kind of been grandfathered into today's society, the space mostly belonging to Hooters and Twin Peaks.

Now, Hooters might have a couple fewer locations to compete with as the owner of two Twin Peaks restaurants in Florida has filed for Chapter 11 bankruptcy protection.

According to Nation's Restaurant News, DMD Ventures out of Davie, Fla., has filed for bankruptcy.

The company has filed simultaneous bankruptcy petitions for its two affiliated businesses, DMD Florida Development 2, LLC and DMD Florida Restaurant Groups C and D LLC, which own and operate two separate Twin Peaks restaurants.

They are in some deep waters, too. The bankruptcy paperwork lists around $1 million in assets and between $10-$50 million in debt to creditors.

DMD Ventures is also facing a $12 million lawsuit from Florida Restaurant Franchise Group, one of its biggest creditors.

In an interesting turn of events, this bankruptcy filing is happening at the same time that Twin Peaks is set to go public, which is early in 2025.

Fat Brands, the owner of the Twin Peaks brand, has filed a Form 10 Registration Statement for Twin Hospitality Group with the U.S. Securities and Exchange Commission.

According to Restaurant Business, Twin Hospitality Group plans to spin off Twin Peaks to shareholders, who will get five percent of the shares of the new company, while Fat Brands will keep the other 95 percent.