Iconic restaurant chain Hooters files for bankruptcy and is selling 100 locations
The American restaurant chain known for skimpily dressed waitresses, Hooters, has filed for bankruptcy and plans to sell 100 US locations in order to stay in business.
Hooters of America LLC on Monday announced it is signing a restructuring support agreement with a Buyer Group that already owns and operates more than 30% of franchised Hooters restaurants in the country.
The company plans to offload the locations to the group of Hooters franchisees under a voluntary Chapter 11 protection filing made with the North Texas Bankruptcy Court in Dallas on Monday.
It comes after reports in late February that Hooters was heading for bankruptcy.
‘Our renowned Hooters restaurants are here to stay,’ stated Hooters of America CEO Sal Melilli.
‘Today’s announcement marks an important milestone in our efforts to reinforce Hooters’ financial foundation and continue delivering the guest-obsessed hospitality experience and delicious food our customers and communities have come to expect.’
After the Chapter 11 process, all Hooters locations will be owned by franchisees.
Speaking for the Buyer Group, Hooters Inc CEO Neil Kiefer said they have more than 30 years of experience working with Hooters and know what it takes to exceed customers’ expectations.
‘As we look toward the future, we are committed to restoring the Hooters brand back to its roots and simplifying HOA’s operations by adopting a pure franchise model that will maximize the potential for sustainable, long-term growth,’ stated Kiefer.
The chain is famous for Hooters Girls waitresses, who wear low-cut tight tops with the brand’s owl logo and orange shorts. The first location opened in Clearwater, Florida, in 1983 and the company also became known for its wings and sports bar-style food.
Hooters of America grew to become the franchisor and operator of more than 410 restaurants in 38 US states and 24 countries. The company’s existing franchise operations and locations outside of the US will not be affected by the bankruptcy process.
‘I’ve seen firsthand the incredible value and opportunities our brand brings to life,’ Melilli stated, ‘And I look forward to continuing that momentum well into the future.’
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