Two Fat Phill’s restaurants declared bankrupt as chain explores reopening

Two restaurants run by the same Fat Phill’s franchisee were declared bankrupt in October: first the outlet at Mall of the Netherlands in Leidschendam, then the one at Zuidplein in Rotterdam. Chain owner Armin Vahabian says he is exploring options for reopening them. However, no takeover has been confirmed, according to reporting by Dutch regional broadcaster Omroep West on 30 October.

Two bankruptcies involving the same franchisee

The restaurant at Mall of the Netherlands was declared bankrupt in mid-October. According to the insolvency trustee, the premises were already empty at that point. Two weeks later, the outlet at Zuidplein in Rotterdam was also declared bankrupt. Both restaurants were run by the same franchisee and were part of the nationwide Fat Phill’s burger chain.

The situation in Rotterdam is less clear than in Leidschendam. The trustee told Omroep West that, as far as he understood, the outlet had not yet closed permanently. The reported bankruptcy therefore does not establish that the Rotterdam restaurant will disappear for good.

This leaves two separate questions: how will the bankruptcies be dealt with, and can the restaurants continue operating at these locations? The chain’s owner is hopeful about the latter. However, the trustee has not confirmed any potential takeover by the chain. Nor has a specific reopening date been announced for either restaurant.

Other franchisees are not bankrupt

Fat Phill’s launched in 2019 and has around twenty restaurants in the Netherlands, according to Omroep West. The two bankrupt businesses are therefore part of a larger network. The restaurants in Leiden, The Hague and Delft are operated by other franchisees and are not bankrupt.

This distinction matters when interpreting the news in the context of the Dutch franchise market. The bankruptcies concern two outlets belonging to one operator, not the entire chain. Speaking to Omroep West, Vahabian disputed suggestions that Fat Phill’s as a chain was in financial difficulty.

To support his position, he pointed to growth at other restaurants. According to the chain’s owner, Groningen recorded growth of twelve per cent in recent months, while Hoofddorp saw twenty per cent growth. The reporting does not specify what those percentages measure. They should therefore be understood as growth figures cited by the owner, rather than a comprehensive picture of the franchise network’s financial performance.

There was also a positive report from Leiden. The local franchisee told Omroep West that the restaurant was growing and trading well. That statement concerns the Leiden outlet and does not alter the bankruptcies in Leidschendam and Rotterdam.

Discussions with the landlords

Vahabian says he is in talks with the landlords at both locations about reopening the restaurants. He says an agreement has already been reached for Rotterdam. The chain also says it has submitted a proposal for the Mall of the Netherlands site.

The owner is optimistic about Leidschendam, citing a good relationship with the landlord. That optimism does not yet amount to a final agreement to reopen. Submitting a proposal for a site and actually resuming trading are separate steps.

It also remains unclear who would operate the restaurants if they reopened. The reporting does not confirm whether a new franchisee would take over or whether the chain would run the businesses itself. For now, the discussions concern the possibility of continuing at both locations.

Trustee has not confirmed a takeover

Alongside Vahabian’s plans, the trustee has offered a different perspective. He says he is unaware of any takeover by the chain of the restaurants in Leidschendam and Rotterdam. According to Omroep West, arrangements with creditors must first be settled before further steps can be taken.

The position therefore remains provisional: two bankruptcies have been reported, the chain’s owner is discussing reopening, and the trustee has not confirmed a takeover. The statements from those involved do not yet provide a jointly confirmed plan for what happens next.

Practical guidance for the franchise community: when reading reports about a bankrupt outlet, distinguish between the franchisee involved, other operators in the network and the chain itself. Treat announced reopening talks as a firm next step only once the parties involved have confirmed the arrangements.