Michelle ThompsonHooters of America has filed for bankruptcy in Texas, aiming to address its debts by selling all of its company-owned locations to a group supported by its founders.
The company currently owns and runs 151 restaurants, with an additional 154 locations operated by franchisees, primarily in the US.
Hooters stated that its restaurants, known for serving classic American bar food, will remain open and continue operations as usual during the bankruptcy process.
Similar to other casual dining chains, Hooters has faced challenges in recent years, dealing with rising costs, wages, and decreased consumer spending.
Hooters is famous for its waitresses and signature chicken wings.
“Our iconic Hooters restaurants are here to stay,” said Sal Melilli, CEO of Hooters of America, in a statement.
“This announcement represents a crucial step in strengthening Hooters’ financial position.”
The company plans to sell all its corporate-owned restaurants to a group of two current Hooters franchisees, who operate 14 of the chain’s popular locations near Tampa, Florida, and Chicago, Illinois.
This group includes some of the chain’s founders, who have pledged to return the brand to its origins and make it more family-oriented.
Hooters did not disclose the deal’s value, which still requires approval from a US bankruptcy judge. The rescue plan is expected to be finalized within four months.
Founded in 1983, Hooters is famous for its waitstaff, predominantly young women known as “Hooters Girls,” and its chicken wings. The form-fitting uniforms worn by the staff have become a key part of the chain’s public image.
