Hooters Declares Bankruptcy – What’s Next for the Iconic Chain?

California (Thechieftainspear) – Hooters, the well-known restaurant chain recognized for its signature uniforms and popular chicken wings, has officially filed for bankruptcy. According to Reuters, the company made the filing on Monday in a Texas court as part of a restructuring plan aimed at addressing its $376 million debt. The strategy involves selling all corporate-owned locations to a group of franchisees, which includes original company founders and operators responsible for more than 30% of Hooters’ domestic locations. This group currently runs 14 of the company’s 30 highest-performing restaurants.

Like other casual dining chains such as Red Lobster and TGI Fridays, Hooters has struggled with rising costs. Inflation, increasing food and labor expenses, and a shift in consumer spending habits have all contributed to financial challenges. Additionally, CNN reported that the company faced costly legal battles over allegations of gender and racial discrimination.

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Signs of financial strain emerged in June 2024 when Hooters closed several underperforming locations, a move that now appears to have foreshadowed the bankruptcy filing.

Despite the restructuring, Hooters executives emphasize that the brand will continue to operate. CEO Sal Melilli reassured customers in a statement, saying, “Our iconic Hooters restaurants are here to stay. This process will strengthen our financial position and allow us to continue providing the same great experience and food our guests love.”

To support its operations during bankruptcy proceedings, the company has secured approximately $35 million in financing from its current lenders, Reuters noted.

Founded in 1983, Hooters currently owns 154 restaurants, while franchisees operate an additional 151 locations. The company’s website lists seven locations in California .

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Layla Hango

Layla Hango is a dedicated author at The Chieftain Spear, where she delves into stories that highlight cultural richness, social issues, and community empowerment. With a passion for storytelling that inspires and informs, Layla brings a fresh perspective to her writing. Her work resonates with readers seeking meaningful dialogue and a deeper understanding of diverse experiences. Through her articles, Layla aims to spark positive change and celebrate the strength of collective voices.

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