Hooters Enters Bankruptcy But Vows to Keep Restaurants Open

The well-known restaurant chain Hooters, famed for its signature Buffalo wings and uniquely dressed waitstaff, has filed for bankruptcy in a Texas court, but has promised that its establishments will continue to serve patrons throughout the process. A consortium of the company’s founders, who manage approximately one third of the Hooters franchised restaurants in the United States, will purchase the company-owned outlets from the private equity firm that currently oversees the chain. This strategic bankruptcy aims to ensure the longevity of many Hooters locations.

Hooters announced, “Our renowned Hooters restaurants are here to stay,” and reiterated the chain’s commitment with the slogan, “It’s always hang time at Hooters.” The restaurant boasts over 400 locations across 42 states and 29 countries, although many of these are operated as franchises and will remain unaffected by the bankruptcy. Once the proceedings conclude, it is expected that all outlets will convert to a franchise model.

Speculation about Hooters' financial struggles had emerged weeks prior, with reports highlighting the chain's considerations for bankruptcy appearing first in Bloomberg News. Last summer, Hooters had to close several locations due to declining performance. Neil Kiefer, CEO of an independent company that operates original Hooters restaurants, spoke to Bloomberg about his plans for a “re-Hooterization.” This initiative aims to transform the brand, possibly eliminating certain promotional events like “bikini nights” to refresh its image.