Hooters, the chain restaurant known for its waitresses in orange uniforms and signature chicken wings, announced today that it has filed for bankruptcy protection. However, the decades-old brand says it is not going away.
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04-03, 2025As part of the bankruptcy proceedings, Hooters plans to sell all 100 of its company-owned restaurants to two franchise groups, which operate Hooters restaurants in the Tampa, Florida, and Chicago areas, respectively. According to a press release, these two groups collectively operate one-third of the franchise locations in the United States.
Hooters is not alone, as other casual fast-food restaurants, such as BurgerFi and Red Lobster, have also filed for bankruptcy due to challenging business conditions. In addition, Hooters' labor issues have garnered significant attention, facing multiple lawsuits alleging racial and gender discrimination. Last year, Hooters closed dozens of restaurants, attributing the closures to rising food and labor costs.
Hooters says it plans to emerge from Chapter 11 bankruptcy protection in "approximately 90-120 days." Hooters of America CEO Sal Melilli said in a press release: "Today’s announcement represents a significant step forward in strengthening Hooters’ financial foundation and continuing to deliver our unique brand of food and hospitality that customers and communities have loved for decades."
Hooters has filed for Chapter 11 bankruptcy protection in a Texas court, a common path for struggling companies to address financial problems through restructuring. Hooters says it will continue to operate its business as usual, but also stated that it is "evaluating its company-owned store footprint," meaning that some locations may close during the bankruptcy process. Private equity firms Nord Bay Capital and TriArtisan Capital Advisors acquired Hooters in 2019.
The acquiring parties include original Hooters founders, including Neil Kiefer, CEO of the franchise group Hooters Inc. Kiefer said in a news release Monday: "For years, the Hooters brand has been owned by private equity firms and other groups without the history or experience of the Hooters brand." In an interview with Bloomberg News last week, he said the turnaround plan includes making the chain more family-friendly.
Kiefer said that the founder-led acquisition will allow the brand to "get back to its roots," with the restaurant emphasizing: "Our famous Hooters restaurants will continue to thrive."
