Get ready for a more family-friendly Hooters after the company declared bankruptcy.
The “delightfully tacky, yet unrefined” restaurant chain in bright orange known for its wings and waitresses in low-cut tank tops announced on March 31 that it has filed for Chapter 11 bankruptcy in Texas.
A group comprised of the owners of some of Hooters’ most high-performing locations in Chicago, Illinois and Tampa, Florida, and backed by the company’s founders, has reached an agreement to buy more than 100 restaurants owned by the company, according to a news release. The group will own more than 30% of the domestic franchised Hooters locations, per the release.
The new ownership group plans to pivot to a more family-oriented approach from its edgy reputation. In 2021, Hooters received backlash from its servers after it introduced small black shorts that some described as “underwear,” creating an atmosphere the new owners look to change.
“You go to some parts of the country and people say, ‘Oh I could never go to Hooters, my wife would kill me,”’ Neil Kiefer, CEO of the founder-owned unit, HMC Hospitality Group, told Bloomberg. “That’s depressing to us. We want to change that.”
Hooters said its restaurants will remain open at this time after it declared for Chapter 11 bankruptcy. Ethan Miller / Getty Images
Hooters was bought by private equity firms TriArtisan Capital Advisors and Nord Bay Capital in 2019.
“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 news release about buying the 100 company-owned locations. “As a result of these transactions, the Hooters brand will once again be in the hands of highly experienced Hooters franchisees and we will be well-positioned to return this iconic brand to its historic success.”
All Hooters locations will be owned by franchisees by the end of the bankruptcy process, which should take 90 to 120 days to complete, according to a separate news release.
“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 our customers and communities have come to expect,” Sal Melilli, CEO of Hooters of America, said in the release about the bankruptcy.
The company said in a section on its website that the bankruptcy will allow it to create a “stronger financial foundation and streamlined operations.” It added that no changes will be made at this time to its menu and offerings.
The announcement comes months after Hooters abruptly closed several “underperforming” restaurants, then settled a race and color discrimination lawsuit for $250,000.
The restaurant chain opened its first location in 1983 in Clearwater and currently owns 151 locations, with another 154 owned by franchisees, according to CNBC.
Hooters is the latest popular ‘90s casual dining spot to fall on hard times amid pandemic-related inflation and the rise of fast casual and delivery options. TGI Friday’s declared bankruptcy in November 2024 and closed dozens of “underperforming” locations. Red Lobster filed for bankruptcy in May 2024 after months of store closures.
