Hooters of America has filed for bankruptcy in Texas to address its $376 million debt by selling all company-owned restaurants to a franchise group supported by the founders. The move comes amid struggles faced by casual dining restaurants due to inflation, high labor and food costs, and reduced consumer spending. Hooters currently owns and operates 151 locations, with an additional 154 operated by franchisees, mainly in the U.S. The buyer group consists of two existing Hooters franchisees who manage 30 high-performing locations, primarily in Florida and Illinois. The transaction requires approval from a U.S. bankruptcy judge. Hooters aims to return to its roots under the leadership of its original founders. The company expects to complete the deal within three to four months and has secured about $35 million in financing for the process. — new from CNBC
