Hooters Files for Chapter 11 Bankruptcy, Plans Sale of Company-Owned Restaurants

The chain will continue operations as it restructures, with franchisees and original founders set to take over ownership of 100 locations.

Hooters has officially filed for Chapter 11 bankruptcy in a Texas court to address debt and financial challenges.
As part of the restructuring, the company will sell all 100 company-owned restaurants to two franchisee groups, including the original founders.
The chain aims to exit bankruptcy within 90-120 days while continuing to operate its restaurants during the process.
Hooters plans to evaluate its operational footprint, potentially closing some locations to focus on its strongest assets.
Franchise operations, including international locations, remain unaffected as the company shifts towards a more family-friendly brand strategy.