Hooters Files for Bankruptcy

Hooters, the restaurant chain known for its orange-clad wait staff and chicken wings, has filed for bankruptcy. However, the company says it's not going anywhere.

In a bid to restructure its finances, Hooters plans to sell all of its 100 company-owned restaurants to two franchisee groups operating in the Tampa, Florida, and Chicago areas. These groups collectively operate a third of the US franchised-owned locations.

Hooters joins other fast-casual chains like BurgerFi and Red Lobster that have filed for bankruptcy amid tough business conditions. The company has also faced lawsuits related to racial and gender discrimination, as well as allegations of poor working conditions.

The company says it expects to exit 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."

Sal Melilli, CEO of Hooters of America

Hooters filed for Chapter 11 bankruptcy protection in a Texas court, a common route for struggling companies seeking financial reorganization.

The company will continue operating its business as usual but is evaluating the operational footprint of its company-owned locations. This may result in some locations being closed during the bankruptcy process.

"For many years now, the Hooters brand has been owned by private equity firms and other groups with no history or experience with the Hooters brand."

Neil Kiefer, CEO of franchisee group Hooters Inc.

Kiefer said that the founder-led buyout will allow the brand to return to its roots and make the chain more family-friendly. He emphasized that "Our renowned Hooters restaurants are here to stay."