Hooters, the restaurant chain known for its chicken wings and female servers clad in skimpy, revealing bright orange outfits, has filed for Chapter 11 bankruptcy, the company said on Monday. However, company officials said its restaurants will remain open.
HOA Restaurant Group filed the motion in the North Texas Bankruptcy Court in Dallas.
Under the bankruptcy agreement, a group that includes the company’s founders -- who independently run approximately a third of the franchised locations in the United States -- will buy the company-owned restaurants in the U.S. from the private equity firm that owns the chain.
Hooters is here to stay.
— Hootie (@Hooters) March 31, 2025
Today we announced that we have entered into an agreement to position Hooters for stability and growth – all while continuing to deliver the guest-obsessed hospitality and delicious food you know and love. 🧡🦉https://t.co/cMTZiB1ctA pic.twitter.com/TAAPJxZJ6M
The company plans to sell all of its 100 company-owned restaurants to a pair of franchisee groups that operate locations in the Chicago and Tampa, Florida, areas. After the process is completed, all of the Hooters locations will be franchises.
The company said it plans to exit Chapter 11 bankruptcy in “approximately 90-120 days.”
“Our renowned Hooters restaurants are here to stay. Today’s announcement marks an important milestone in our efforts to reinforce Hooters’ financial foundation and continue delivering the guest-obsessed hospitality experience and delicious food our customers and communities have come to expect,” Sal Melilli, CEO of Hooters of America, said in a statement. “I’ve seen firsthand the incredible value and opportunities our brand brings to life, and I look forward to continuing that momentum well into the future. I’m incredibly grateful to our valued customers, partners, and employees for their continued support.”
Rumors that Hooters was considering a bankruptcy option was first reported by Bloomberg News. Last summer, Hooters closed dozens of restaurants.
This week, Neil Kiefer, the chief executive of an independent company that runs a group of original Hooters restaurants, told Bloomberg that he was planning what he called a “re-Hooterization,” or rebrand, which would include ending the chain’s “bikini nights.”
According to the company’s website, Hooters was founded in 1983 when six businessmen “with no restaurant experience whatsoever got together to open a place they couldn’t get kicked out of.” The chain, which opened its first store in Clearwater, Florida, now includes 420 restaurants in 29 countries.
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