Hooters Files for Bankruptcy
Hooters of America has filed for bankruptcy in Texas, announcing plans to sell all 151 company-owned locations to a franchise group backed by its original founders. The move aims to tackle the restaurant chain’s $376 million debt while keeping operations running as usual. CEO Sal Melilli assured customers that “our renowned Hooters restaurants are here to stay,” and the new ownership group pledged to take the brand “back to its roots.”
The buyer group consists of two existing franchisees who operate several of Hooters’ top-performing locations, primarily in Florida and Illinois. While the company did not disclose the sale price, the deal still requires approval from a U.S. bankruptcy judge. Hooters expects to complete the transaction and emerge from bankruptcy in three to four months. However, the company is also reviewing its operational footprint, meaning some locations may close during the restructuring process.
Like many casual dining chains, Hooters has struggled with rising food and labor costs, inflation, and shifting consumer spending habits. The company, which was bought by private equity firms in 2019, has also faced legal challenges, including discrimination lawsuits. Now, under its founders’ leadership, Hooters aims to refocus on its core identity while adapting to changing market conditions.
