New York CNN —
Hooters — the restaurant chain first known for its orange-clad, all-female wait staff and then its chicken wings — filed for bankruptcy, the company announced Monday. But the decades-old brand said it isn’t going anywhere.
In the bankruptcy process, the company plans to sell all of its 100 company-owned restaurants to two franchisee groups that operate Hooters locations in the Tampa, Florida, and Chicago areas. The combined group collectively operates a third of the US franchised-owned locations, according to the press release.
Hooters joins other fast-casual restaurants, such as BurgerFi and Red Lobster, which filed for bankruptcy amid rough business conditions. The company’s workforce has also come under fire, with lawsuits ranging from racial discrimination to gender discrimination. Hooters closed dozens of restaurants last year, blaming rising food and labor costs.
The company said it plans 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,” said Sal Melilli, chief executive officer of Hooters of America in the release.
Hooters filed for Chapter 11 bankruptcy protection in Texas court, a common route for struggling companies hoping to solve their financial problems through reorganization.
Hooters said it will continue to operate its business as usual, although it said it is “evaluating the Company’s operational footprint” for its company-owned locations. That means it may end up closing some locations during its bankruptcy process. Private equity firms Nord Bay Capital and TriArtisan Capital Advisors bought Hooters in 2019.
The buyer group includes the original Hooters founders, including Neil Kiefer, CEO of franchisee group Hooters Inc.
“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,” Kiefer said in a press release Monday. In an interview with Bloomberg News last week, he said that the turnaround plan includes making the chain more family friendly.
Kiefer said that the founder-led buyout will allow the brand to go “back to its roots,” and the restaurant emphasized that, “Our renowned Hooters restaurants are here to stay.”
CNN’s Jordan Valinsky contributed to reporting.
