Hooters of America restaurant chain filed for bankruptcy, but your local sports bar is likely here to stay, the company said.
Hooters will sell all of its company-owned restaurants to a franchise group backed by some of the company’s original founders, the company announced Monday.
The privately-owned Hooters directly owns and operates 151 locations. Another 154 restaurants are operated by franchisees.
“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 a news release.
Why did Hooters file for bankruptcy?
The bankruptcy filing, made in Texas, is to address its $376 million debt.
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Hooters has been pressured by inflation, high labor and food costs, and declining spending by American consumers.
In 2024, Hooters closed dozens of underperforming stores in Florida, Texas, Kentucky and Indiana.
Who is buying Hooters?
Hooters has been owned by private equity firms Nord Bay Capital and TriArtisan Capital Advisors since 2019.
The franchise group buying the company-owned restaurants is backed by the company’s founders and collectively own and operate more than 30% of Hooters’ U.S. locations, mostly in the Tampa, Florida, and Chicago, Illinois, areas. The group’s stores account for about 50% of the chain’s highest-volume restaurants.
When will Hooters exit bankruptcy?
Hooters said it expects to complete the deal and emerge from bankruptcy in three to four months. The company has about $35 million in financing from its existing lender group to complete the bankruptcy transaction, which must be approved by a U.S. bankruptcy judge before it becomes final.
Is Hooters closing?
Founded in 1983, Hooters became famous for its chicken wings and its servers’ uniform of orange shorts and low-cut tank tops.
The buyer group said it will take the chain “back to its roots.”
The chain is expected to operate as usual, but some locations might close during the bankruptcy process.
“With over 30 years of hands-on experience across the Hooters ecosystem, we have a profound understanding of our customers and what it takes to not only meet, but consistently exceed their expectations,” Neil Kiefer, CEO of the franchise group Hooters Inc., which operates the original Hooters’ location in Clearwater, Florida, said in the news release.
Hooters to be more family-friendly
In an interview with Bloomberg News last week, Kiefer said that the turnaround plan includes making the chain more family-friendly.
Where are Hooters in Indiana?
- 4620 Lincoln Ave., Evansville
- 7551 South U.S. 31, Indianapolis
- 25 W. Georgia St., Indianapolis
- 700 W. Riverside Dr., Jeffersonville
- 2327 Sagamore Parkway South, Lafayette
- 771 E. 81st Place, Merrillville
- 205 W. Day Rd., Mishawaka
- 1665 Olmsted Dr., Portage
- 1650 U.S. Hwy. 41, Suite A, Schererville
Contact IndyStar reporter Cheryl V. Jackson at [email protected] or 317-444-6264. Follow her on X.com:@cherylvjackson or Bluesky: @cherylvjackson.bsky.social.
