Hooters Takes a Turn: Bankruptcy Filing Sparks Major Changes for Iconic Chain

Hooters of America has officially filed for bankruptcy in Texas, taking significant steps to address its mounting debts through a strategic sale of its corporate restaurants. Currently, Hooters operates 151 company-owned locations alongside 154 franchise outlets across the United States. Despite the legal proceedings, the popular restaurant chain, known for its American bar food, reassures patrons that all locations will continue to operate normally during the transition.

Recent years have proven challenging for Hooters, as rising costs and consumer spending cuts have impacted casual dining establishments nationwide. In a statement, Sal Melilli, the CEO of Hooters of America, expressed optimism about the future, calling the bankruptcy filing a pivotal moment in fortifying the chain’s financial stability.

Plans are in place to sell all corporate restaurants to a group of franchisees linked to Hooters’ original founders. This group currently oversees 14 successful Hooters outlets located primarily around Tampa, Florida and Chicago, Illinois. They have pledged to rejuvenate the brand by returning to its roots and focusing on a more family-friendly atmosphere.

While the exact monetary figures of the deal have not been disclosed, the plan will be subject to approval from a U.S. bankruptcy judge and is anticipated to finalize within four months. Founded in 1983, Hooters has become synonymous with its Hooters Girls, a title given to its predominantly female servers, who are well-known for their form-fitting uniforms. The brand’s image continues to captivate customers even amidst these financial challenges.