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Hooters Closes More Than 30 Locations in Bankruptcy Restructuring

These shutdowns follow Hooters' March bankruptcy filing as it prepares to adopt a full franchise structure by late summer.

Hooters has closed over 30 locations as of June 4, following its bankruptcy filing in March. (AP Photo/Alan Diaz, File)
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Hooters girls backstage at the Alexander Wang Fall 2009 fashion show during Mercedes-Benz Fashion Week at Roseland Ballroom on February 14, 2009 in New York City.
A Hooters restaurant in Rohnert Park, California, US, on Friday, Feb. 21, 2025. Hooters of America is working with creditors on a plan to restructure the business through bankruptcy court in the coming months, according to people with knowledge of the arrangements.

Overview

  • Hooters shuttered over 30 company-owned restaurants on June 4 across at least 12 states, including Florida, Georgia, Michigan, North Carolina, South Carolina, Tennessee and Texas.
  • The chain entered Chapter 11 in March after accruing $376 million in debt, citing inflation, rising labor and food costs and waning dine-in traffic.
  • As part of its turnaround, Hooters will sell all 151 corporate locations to franchisees and operate exclusively under a pure franchise model.
  • A conditional disclosure hearing is set for June 10, and the company expects to complete its 90- to 120-day restructuring by late summer, pending court approval.
  • Hooters says it will maintain service at its remaining restaurants and provide support to impacted employees throughout the transition.