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6d ago

Hooters shutters more than 30 restaurants in Chapter 11 push toward franchising

The Chapter 11 filer will complete its reorganization within 90 to 120 days under a plan that transfers corporate outlets to franchisees.

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’ parent company filed for Chapter 11 in March 2025 with $376 million in debt and operated 305 restaurants at the time.
  • On June 4, the chain permanently closed over 30 company-owned outlets across at least 12 states, spanning Florida, Georgia, Michigan, North Carolina, South Carolina, Tennessee and Texas.
  • A group led by existing franchisees and the brand’s original founders agreed to acquire 130 company-owned restaurants to underpin an all-franchise structure.
  • The chain expects to complete its bankruptcy restructuring within 90 to 120 days, pending approval from the bankruptcy court.
  • The closures underscore wider pressures in casual dining as inflation, rising labor and supply costs and shifting consumer habits challenge chains like Red Lobster and TGI Fridays.