Made famous by its serving staff’s uniforms - low-cut tank tops and orange shorts - and, later, its chicken wings, Hooters has filed for bankruptcy, it announced.
The restaurant chain, Reuters reported, made the filing Monday in a Texas court, with the plan being to deal with its $376 million in debt by selling all its company-owned locations to a franchise group stacked with original founders of the company and a group of current franchisees, who own and operate more than 30% of the company’s domestically owned locations, including 14 of the 30 most trafficked restaurants.
Joining the ranks of Red Lobster, TGI Fridays and other casual dining restaurants, officials with the chain cite inflation, increasing food and labor costs as well as a general decrease in spending by Americans increasingly aware of their shrinking wallets.
There were also expensive lawsuits for gender and racial discrimination, CNN reported.
In June 2024, the restaurant chain announced it was closing dozens of underperforming Hooters locations in a move that perhaps foretold the coming bankruptcy filing.
While Hooters said in a statement that it expects to move through the bankruptcy process within the next 90-120 days, company officials made it clear to its fan base that the restaurant chain is going nowhere.
“Our renowned Hooters restaurants are here to stay,” Sal Melilli, Chief Executive of Hooters of America, said. “Today’s announcement marks an important milestone in our effort to reinforce Hooter’s financial foundation and continue delivering the guest-obsessed hospitality experience and delicious food our customers and communities have come to expect.”
The company has amassed about $35 million in financing from its current lenders to help them get through the bankruptcy proceedings, Reuters reported.
Founded in 1983, the company itself owns 154 locations with another 151 operated by franchisees. There are seven locations in California, according to its website.