Hooters Files for Bankruptcy Amid Efforts to Rebuild

Hooters, a popular restaurant chain, has announced that it is filing for Chapter 11 bankruptcy as part of its efforts to rebuild the company. As part of this process, Hooters will sell all of its company-owned restaurants to two franchisees who collectively own and operate over 30% of the domestic franchised Hooters locations.

One of these franchisees is the original owner of Hooters, who currently owns 22 locations primarily in the Tampa and Chicago areas. The company expects to restructure its debt within 90 to 120 days.

"Our renowned Hooters restaurants are here to stay. 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 that our customers and communities have come to expect," said Sal Melilli, CEO of Hooters of America.

"I've seen firsthand the incredible value and opportunities our brand brings to life, and I look forward to continuing that momentum well into the future. I'm incredibly grateful to our valued customers, partners, and employees for their continued support."

Hooters currently has 151 company-owned locations and 154 franchised locations worldwide. The company intends to use the proceeds from the sale of the restaurants to help pay down nearly $376 million in debt.