Hooters restaurant chain has officially joined the list of multiple food chain closures happening all over the country in the past few months. The restaurant, which was once famous for its all-female staff and delicious chicken wings, has now filed for bankruptcy. The company announced the news of its bankruptcy on Monday. However, it also assured its customers that the brand is not going anywhere. If you are someone who wants to know more about Hooters restaurants closing, this article is for you. It brings you everything you need to know about the company filing for Chapter 11 bankruptcy.
Hooters Restaurants Closing: Bankruptcy Plan
The company unveiled its bankruptcy plan this Monday, the 31st of March 2025. It revealed its plan to sell all of its 100 company-owned restaurants to two franchisee groups that are operating Hooters locations in the Tampa, Florida, and Chicago areas. According to the press release, the combined group collectively operates a third of the US franchised-owned locations. The company also informed that it’s going to exit Chapter 11 bankruptcy in approximately 90 to 120 days.
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Other Restaurants Closures Last Year
Hooters is not the only restaurant chain that has filed for bankruptcy this year. Many other food chains like Red Lobster and BurgerFi have also filed for bankruptcy after facing adverse business conditions. However, Hooters’ workforce has always been surrounded by lawsuits and controversies. These lawsuits range from racial discrimination to gender discrimination as well. It is not the first time Hooters has closed down its restaurants. The company even closed dozens of restaurants last year. The company blamed rising costs of food and labor for its closures.
What Sal Melilli Said About The Hooters Bankruptcy?
Sal Melilli is the current chief executive officer of Hooters of America. He mentioned in the press release how Monday’s announcement marked an important milestone in their efforts to reinforce Hooters’ financial foundation. Melilli also stated that the company will continue delivering the guest-obsessed hospitality experience and delicious food that their customers and communities have come to expect. The company has filed for Chapter 11 bankruptcy protection in Texas court. It is a common path that every company hoping to solve its financial issues with reorganization opts for. The provision allows businesses to continue their operations while they figure out a plan to pay their creditors.
Company Says Will Continue Operations
The company informed its customers that it will definitely continue its operations as usual. However, it will also evaluate the Company’s operational footprint for the locations the company owns. This may mean that the company will close some of its locations during the process of bankruptcy. Private equity firms, namely Nord Bay Capital and TriArtisan Capital Advisors, bought the company back in 2019. The buyers also included the founder of Hooters, Neil Kiefer. He is also the chief executive officer of the franchisee group Hooters Inc.
What Neil Kiefer Said About The Bankruptcy?
Neil Kiefer said in Monday’s press release that, for many years, private equity firms and other groups have owned the brand with no history or experience with the Hooters brand. During an interview conducted last week, Kiefer also stated that the plan includes making the food chain even more family-friendly. He also explained how the founder-led buyout will allow the brand to go back to its roots. The restaurant also specifically emphasized that their renowned Hooters restaurants are here to stay.
