Hooters files for bankruptcy, but some restaurants to remain operating

[cigaretteman]

Hooters, the restaurant chain known for chicken wings and the revealing outfits worn by its female waitstaff, filed for bankruptcy in a Texas court on Monday.
The Atlanta-based company, Hooters of America, said in a news release that it has reached an agreement to sell some of its restaurants to a group of two current franchisees, including the original founder of the chain, Hooters Inc.


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Hooters Inc. said the group would buy more than 100 restaurants out of about 305 Hooters-branded restaurants worldwide.
The franchisee group would also step in to provide support to other franchises after Hooters of America ceased ownership, it said in a news release. “We will be well-positioned to return this iconic brand to its historic success,” said Neil Kiefer, the CEO of Hooters Inc.

Hooters of America is seeking Chapter 11 bankruptcy, which allows a business to continue operating while its finances are restructured. The company expects to move through the process in about 90 to 120 days, according to a release.

https://www.washingtonpost.com/business/2025/04/01/hooters-files-bankruptcy/

 

[QChawks]

 

[TC Nole OX]

"Hooters of America, the struggling Hooters franchisor that could be headed for bankruptcy, may have a savior in the brand’s original founders.

HMC Hospitality Group, the restaurant group owned by the six men who opened the first Hooters in 1983, has a plan to take control of Hooters of America (HOA) following a bankruptcy filing, Bloomberg reported on Thursday.

Clearwater, Florida-based HMC operates 22 Original Hooters locations in Florida and the Chicago area. It has been its own entity since 2002, when the founders sold the Hooters trademark to Atlanta-based franchisor HOA, but maintained control over the restaurants they owned."

Hooters founders reportedly plan to take control of the struggling chain

HMC Hospitality, the operator of Original Hooters restaurants, is plotting to rescue the larger Hooters of America through a bankruptcy

www.restaurantbusinessonline.com

 

[TC Nole OX]

"The company estimated both its assets and liabilities at between $50 million and $100 million, according to court filings.

Hooters in a court filing on Tuesday blamed its financial struggles on “inflationary pressure and industry headwinds.”

But it also acknowledged a substantial amount of debt, most of it from a 2021 whole business securitization financing. In 2024, for instance, the company owed $31 million in debt service payments. “The substantial size of the company’s debt-service obligations has put significant pressure on the business,” according to the filing.

The bankruptcy does not involve the company’s international units, which numbered 67 as of 2023, according to Technomic.

The company operates close to 200 company units in the U.S., while franchisees operated 97 restaurants domestically as of the end of 2023. Hooters has closed 48 restaurants since the beginning of 2024, according to court filings.

Hooters joins a growing list of casual-dining chains that have filed for bankruptcy over the past year, including major names like Red Lobster and TGI Fridays. And like Fridays, Hooters went into the bankruptcy having borrowed funds through a whole business securitization.

The agreement with the two Hooters franchisees is expected to enable the company to remain in operation under new ownership. Hooters has been owned by a pair of private-equity firms: Nord Bay Capital and TriArtisan Capital Partners.

Neil Keifer, CEO of Hooters Inc., said in a statement that the group looking to buy the restaurants “are committed to restoring the Hooters brand back to its roots.”

He said that the company plans to simplify HOA’s operations “by adopting a pure franchise model that will maximize the potential for sustainable, long-term growth.”"

Hooters of America declares bankruptcy

The venerable casual-dining chain plans to sell its company restaurants to two existing franchisees, including the company run by the

www.restaurantbusinessonline.com

 

[Ferentz_Fan]

Spin off restaurant, Cooters?

 

[TJ8869]

Spin off restaurant, Cooters?

There used to be one in Clearwater but it closed about 3 years ago.

 

[TC Nole OX]

Hooters files for Chapter 11 bankruptcy

The company has reached an agreement to sell some company-owned locations to a group of franchisees that includes the original founders

www.nrn.com

 

[St. Louis Hawk]

 

[GOHOX69]

I always went there for the delicious food

 

[TC Nole OX]

Tracking the same-store sales of 21 major restaurant chains

Sales at pizza and casual dining brands have struggled, while QSR giants like McDonald’s and Starbucks saw anemic changes and fast casuals Cava and Chipotle made big gains.

www.restaurantdive.com

Nearly half of independent restaurants couldn’t pay rent in November: report

Rental delinquencies were up 11% last month compared to 2023 as operators struggled with rising operating costs, according to Alignable.

www.restaurantdive.com

 

[onlyTheObvious]

I think I went to one once.

I just felt sorry for the women for some reason. Felt gross, about like going to a strip club to eat.

 

[GOHOX69]

I think I went to one once.

I just felt sorry for the women for some reason. Felt gross, about like going to a strip club to eat.

My friend had his bachelor party at the Des Moines one, when it existed. I found out how Drake coeds made extra money.

 

[The Tradition]

Wing House is better anyway.

 

[funksouljon]

Wing House is better anyway.

Can't speak to Wing House, but I've found everything "good" about a Hooters can be found better elsewhere.

Always funny to see how the "talent" varies from state to state, area to area.