Hooters Files for Bankruptcy, Plans Full Transition to Franchise Model

The restaurant chain aims to address $376 million in debt by selling company-owned locations to franchisees, including a group led by its original founders.

Hooters of America has filed for Chapter 11 bankruptcy to restructure $376 million in debt and transition to a fully franchisee-owned model.
The company will sell its 151 company-owned restaurants to two franchisee groups, one of which is backed by the chain's original founders.
Hooters plans to maintain operations during the bankruptcy process, with no immediate changes to its menu or customer offerings.
The restructuring process is expected to be completed within 90-120 days, leaving all U.S. locations under franchise ownership.
International franchise operations, which are not affected by the bankruptcy, will continue to operate as usual in 29 countries.