Hooters Files for Bankruptcy
Posted on 04/03/25 at 23:40
- Hooters Files for Bankruptcy
- Operations to Continue During Restructuring
- 100 Company-Owned Restaurants to Be Sold
The popular restaurant chain Hooters, known for its chicken wings and female staff in signature orange uniforms, surprised many by announcing it has filed for Chapter 11 bankruptcy.
The filing was made in a Texas court with the aim of restructuring operations without halting service.
Far from closing its doors, the company confirmed it will remain open during this financial transition.
As part of its plan, Hooters intends to sell 100 of its company-owned restaurants.
Franchisees Step In to Help Save Hooters
Atlanta-based Hooters files for bankruptcy, says they aren’t going anywhere https://t.co/j6zuaeo9q7
-WSB-TV (@WSBTV) April 1, 2025
The buyers will be two franchise groups that already operate Hooters locations in Tampa, Florida, and Chicago.
Together, these groups currently manage about one-third of all Hooters franchises in the United States, according to the company.
This move marks another effort to keep the struggling brand afloat.
Rising food and labor costs have led to the closure of several restaurants in recent years.
The chain has also faced legal controversy, including lawsuits over racial and gender discrimination.
Nevertheless, Hooters insists that day-to-day operations and customer service will not be affected by the restructuring process.
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“This announcement is a key milestone in strengthening our financial foundation,” said Hooters CEO Sal Melilli.
The goal is to complete the restructuring within 90 to 120 days.
The brand was acquired in 2019 by Nord Bay Capital and TriArtisan Capital Advisors, along with the original founders.
One of them, Neil Kiefer, expressed his desire to restore Hooters to its original spirit.
According to Kiefer, the brand spent too long in the hands of investors disconnected from its identity.
Now, with a renewed focus, Hooters hopes to reconnect with its roots and offer a more welcoming, family-friendly experience.
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