Hooters has filed for bankruptcy in Texas, while a group of its founders will take ownership of the company-run locations. The popular chain, recognized for its wings and unique service model, intends to keep its more than 400 restaurants open through this process.
Hooters Bankruptcy Filing: Founders Step In to Keep Restaurants Open
Hooters Bankruptcy Filing: Founders Step In to Keep Restaurants Open
Hooters announces bankruptcy but reassures customers that its restaurants will remain operational during the transition.
Hooters, the renowned restaurant chain famous for its chicken wings and all-female waitstaff, has officially filed for bankruptcy in a Texas court, according to a recent announcement made by the company. Hooters stated that despite this financial restructuring, customers can still enjoy their favorites: “It’s always hang time at Hooters.”
The bankruptcy plan involves a group that includes the company’s founders acquiring the company-owned restaurants from the private equity firm that currently oversees many locations. This decision is part of a broader strategy to ensure that numerous restaurants continue operating amidst the proceedings.
Hooters boasts over 400 locations throughout 42 states and 29 countries; however, it is worth noting that only the company-operated restaurants will be affected by this bankruptcy filing, while franchised locations remain unaffected. Once the process concludes, all Hooters establishments are expected to operate as franchises.
Speculation regarding Hooters' financial troubles had surfaced in recent weeks, gaining traction with reports from Bloomberg News. The past summer also saw the closure of various restaurants across the chain, prompting further concerns about its viability in the competitive dining landscape.
Neil Kiefer, who leads an independent company operating a collection of original Hooters restaurants, has revealed plans for a “re-Hooterization” approach aimed at rebranding the chain. One part of this rebranding strategy may involve eliminating the beloved “bikini nights” that have contributed to Hooters' distinct identity over the years.
As Hooters embarks on this significant transition, the commitment to maintaining its restaurants remains clear, signaling the company's intent to adapt and thrive in an evolving market.
