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3w ago

Hooters Files for Chapter 11 Bankruptcy, Plans Transition to Franchise Model

The restaurant chain aims to address $376 million in debt, sell 151 company-owned locations, and rebrand with a family-friendly focus while maintaining operations.

The entrance to Hooters Restaurant, located inside the Hooters Casino Hotel, is seen January 30, 2006 in Las Vegas, Nevada.
JOHANNESBURG, SOUTH AFRICA JANUARY 16: (SOUTH AFRICA OUT): Bartender Carla De Pont prepares the Angel shot cocktails at Hooters Restaurant on January 16, 2017 in Johannesburg, South Africa. The Angel shot poster is a drinks menu designed for women to safely communicate to restaurant assistant when they feel threatened or unsafe, by ordering specific signal drinks. (Photo by Cornel van Heerden/Foto24/Gallo Images/Getty Images)

Overview

  • Hooters of America filed for Chapter 11 bankruptcy in Texas, citing $376 million in debt and declining foot traffic as key challenges.
  • The company plans to sell all 151 company-owned restaurants to franchisee groups, including one led by its original founders.
  • Hooters will transition to a fully franchise-owned model, with global franchise operations remaining unaffected by the restructuring.
  • Leadership aims to rebrand the chain with a more family-friendly image while preserving the menu and customer experience.
  • The company expects to emerge from bankruptcy within 90 to 120 days, continuing operations throughout the process.