Hooters Explores Bankruptcy Amid Declining Revenue and $300M Debt

The restaurant chain is reportedly preparing for a potential Chapter 11 filing as it works to restructure its operations and address financial challenges.

Hooters is reportedly working with law firm Ropes & Gray to prepare a potential bankruptcy filing within the next two months, though plans are not yet finalized.
The chain faces $300 million in debt, stemming from asset-backed bonds issued in 2021, and declining customer foot traffic at its locations.
In 2024, Hooters closed approximately 40 underperforming locations across the U.S. as part of cost-cutting efforts to manage ongoing financial pressures.
Economic factors such as inflation, rising food and rent costs, and shifting dining habits have contributed to the struggles of casual dining chains like Hooters.
Despite its challenges, Hooters has expressed intentions to continue operations, expand internationally, and grow its frozen food product line as part of a potential restructuring plan.

Orange County Register