Hooters Faces Financial Struggles; Iconic Chain Prepares for Chapter 11 Bankruptcy
Hooters, the iconic American restaurant chain known for its wings and scantily clad waitresses, is reportedly preparing to file for Chapter 11 bankruptcy in the coming months. The chain, which has faced financial struggles, is working with law firm Ropes & Gray to navigate the restructuring process. This move comes as Hooters grapples with rising costs of rent and food, coupled with a decline in customers dining out.
The chain has already closed around 40 “underperforming” locations in 2024, including several in the U.S., as part of cost-cutting measures. A bankruptcy filing could lead to further closures of its remaining 300 restaurants. Hooters, which was acquired by private equity in 2019, is burdened with approximately $300 million in debt, backed by assets such as property, brand rights, and franchise fees.
Despite its challenges, Hooters has attempted to remain resilient, launching new products like frozen food lines in supermarkets and opening a few new locations in 2023. However, the broader restaurant industry has been under pressure, with rising costs and reduced customer traffic affecting many chains. Hooters’ bankruptcy filing would follow similar moves by other struggling restaurant brands, such as Red Lobster, which recently emerged from Chapter 11 after closing 100 locations.
The chain, which celebrated its 40th anniversary in 2023, remains a cultural icon, but its financial troubles highlight the difficulties faced by traditional dining establishments in a changing economic landscape.
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Hugely popular themed restaurant chain on brink of bankruptcy
A hugely famous American restaurant chain is preparing to file for bankruptcy.
www.dailymail.co.uk
Hooters preparing to file bankruptcy after shuttering dozens of locations: report
Hooters closed approximately 40 locations last year and owes $300 million in asset backed bonds
www.independent.co.uk
Hooters in bankruptcy talks: What we know so far
In recent years, the restaurant chain saw customer foot traffic decline and had to close many locations across the country.
www.newsweek.com
Hooters is reportedly preparing a bankruptcy filing
The casual-dining chain has hired a law firm to prepare a filing, Bloomberg reported. The chain has been struggling for years.
restaurantbusinessonline.comHooters prepares for potential bankruptcy amid closure of stores
Hooters has been facing financial struggles due to a significant decrease in customer traffic to its store
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