Hooters, the restaurant chain famous for its orange-clad, all-female wait staff and its chicken wings, has filed for Chapter 11 bankruptcy protection. The company announced the move on Monday but emphasized that the brand is not disappearing. Through the bankruptcy process, Hooters intends to sell all 100 of its company-owned restaurants to two franchisee groups operating in the Tampa, Florida, and Chicago areas. These groups collectively manage about one-third of the U.S. franchised locations.
Hooters joins a list of other fast-casual dining establishments, such as BurgerFi and Red Lobster, that have sought bankruptcy protection due to challenging business conditions. The company has faced legal challenges, including lawsuits alleging racial and gender discrimination. Last year, Hooters closed numerous restaurants, citing rising food and labor costs.
The company anticipates exiting Chapter 11 bankruptcy within approximately 90 to 120 days. Sal Melilli, CEO of Hooters of America, stated that this announcement represents a significant step toward strengthening Hooters’ financial foundation while continuing to provide quality service and food. The company will continue normal operations during the bankruptcy process but may reassess its operational footprint, potentially leading to some closures. Private equity firms Nord Bay Capital and TriArtisan Capital Advisors acquired Hooters in 2019.
Neil Kiefer, CEO of Hooters Inc., one of the buyer groups, noted that the brand has been owned by private equity firms with limited experience in the Hooters brand. The turnaround strategy includes making the chain more family-friendly. Kiefer expressed optimism about returning to the brand’s roots and emphasized that Hooters restaurants will remain operational.
— new from CNN