Hooters of America Seeks Bankruptcy Protection Amid Financial Struggles
The Texas-based restaurant group initiates a bankruptcy process to address mounting debts through the sale of its company-owned locations.
Hooters of America has filed for bankruptcy protection in Texas, aiming to manage the debt accumulated over recent years through the sale of its company-owned restaurants.
The company currently owns and operates 151 locations directly, with an additional 154 restaurants operated by franchise partners, primarily in the United States.
The company announced that its restaurants will remain open and operate in the 'usual manner' during the transition.
Like many dining chains, Hooters has faced challenges in recent years, notably due to rising wages and costs, alongside decreased traffic.
CEO Sal Melilli stated in a press release that 'the iconic Hooters restaurants will remain,' describing the announcement as a significant milestone in strengthening the company's financial foundation.
Plans indicate that the restaurants will be purchased by two franchise partners of Hooters, who currently operate the chain's 14 highest-traffic locations in Florida and Illinois.
Among the buyers are some of the chain's founders, who have committed to 'bringing the brand back to its roots' and making it more family-friendly; however, details about what this entails were not specified in the company’s announcement.
The current estimated value of Hooters remains undisclosed and will need approval from a U.S. bankruptcy judge.
The bankruptcy proceedings are expected to conclude within four months.
Founded in 1983, Hooters gained fame for its waitstaff, predominantly composed of young women wearing form-fitting t-shirts, known as 'Hooters Girls'.
The company currently owns and operates 151 locations directly, with an additional 154 restaurants operated by franchise partners, primarily in the United States.
The company announced that its restaurants will remain open and operate in the 'usual manner' during the transition.
Like many dining chains, Hooters has faced challenges in recent years, notably due to rising wages and costs, alongside decreased traffic.
CEO Sal Melilli stated in a press release that 'the iconic Hooters restaurants will remain,' describing the announcement as a significant milestone in strengthening the company's financial foundation.
Plans indicate that the restaurants will be purchased by two franchise partners of Hooters, who currently operate the chain's 14 highest-traffic locations in Florida and Illinois.
Among the buyers are some of the chain's founders, who have committed to 'bringing the brand back to its roots' and making it more family-friendly; however, details about what this entails were not specified in the company’s announcement.
The current estimated value of Hooters remains undisclosed and will need approval from a U.S. bankruptcy judge.
The bankruptcy proceedings are expected to conclude within four months.
Founded in 1983, Hooters gained fame for its waitstaff, predominantly composed of young women wearing form-fitting t-shirts, known as 'Hooters Girls'.
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