Hooters, a restaurant chain, files for bankruptcy

Hooters, the restaurant franchise most known for its orange-clad, all-female wait staff and subsequently its chicken wings, has filed for bankruptcy, the company revealed Monday.

Hooters, like other casual dining restaurants, has struggled in recent years owing to inflation, rising labor and food expenses, and decreased spending by cash-strapped American customers. During the bankruptcy process, the firm intends to sell all of its 100 company-owned restaurants to two franchisee groups who hold Hooters sites in Tampa, Florida, and Chicago.

The buying group comprises of two current franchisees, including the original creators, Hooters Inc., who combined manage more than 30% of Hooters franchised sites in the United States. In 2019, private equity companies Nord Bay Capital and TriArtisan Capital Advisors acquired Hooters.

Last year, Hooters shuttered dozens of stores, citing increased food and labor expenses.

The firm stated that it intends to leave Chapter 11 bankruptcy in "approximately 90-120 days."

“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,” said Sal Melilli, chief executive officer of Hooters of America in the release.

Hooters filed for Chapter 11 bankruptcy protection in Texas court, which is a frequent path for struggling businesses looking to reorganize their finances.

Hooters, which opened in 1983, became famous for its chicken wings and its servers' uniforms of orange shorts and low-cut tank tops.

The purchasing group is supported by several of Hooters' original founders and has committed to return the company "back to its roots."

“With over 30 years of hands-on experience across the Hooters ecosystem, we have a profound understanding of our customers and what it takes to not only meet, but consistently exceed their expectations,” said Neil Kiefer, a member of the buyer group and the current CEO of the original Hooters’ location in Clearwater, Florida.

Kiefer stated that the founder-led purchase will allow the brand to get "back to its roots," and the restaurant highlighted that "our renowned Hooters restaurants are here to stay."

Casual dining businesses have been hit hard by growing expenses in 2024, with well-known companies such TGI Fridays, Red Lobster, Bucca di Beppo, and Rubio's Coastal Grill declaring bankruptcy last year.