- Hooters of America LLC filed for bankruptcy and plans to sell all company-owned locations to a franchise group.
- The restaurant chain hopes to emerge from bankruptcy within four months with a goal of all locations becoming franchises.
- The company recently announced efforts to create a more family-friendly atmosphere.
- Hooters says that restaurants will remain open and franchise operations will not be affected.
A national restaurant chain known for deals on beer and chicken wings served by waitresses wearing short-shorts and low-cut tops has declared bankruptcy. It’s planning to sell all locations. The new owners and company founders say they plan to take the bar and grill “back to its roots.” Will any restaurants close?
Hooters of America LLC filed for bankruptcy on Monday, March 31. The chain plans to sell all company-owned locations to a franchise group tied to the company’s founders, according to a news release.
Recently, Hooters announced it was working to bring back a family-friendly atmosphere amid slumping sales.
“I’m calling it re-Hooterization,” Neil Kiefer, CEO of HCM Hospitality Group, said in a Bloomberg report.
Hooters has a tradition of celebrating Memorial Day and the Fourth of July with Americana-themed bikini dress-up days, extending into July 5th to mark National Bikini Day. That’s been dropped.
What other changes can you expect as Hooters goes through bankruptcy? Here’s what we know so far.
What we know about the Hooters bankruptcy
The company runs about 151 restaurants, and franchisees run approximately 154. The franchise group buying the corporate-owned locations already own and operate more than 30% of U.S. franchises, including almost half of the Top 30 best-performing Hooters in the company.
The chain hopes to come out of bankruptcy in three to four months, and at the end, all locations will be franchises.
“As we look toward the future, we are committed to restoring the Hooters brand back to its roots and simplifying HOA’s operations by adopting a pure franchise model that will maximize the potential for sustainable, long-term growth. The foundation we’ve laid ensures the continued success of our brand – one that is driven by a relentless focus on delivering an exceptional experience each and every visit for our customers,” said Neil Kiefer, CEO of Hooters Inc., on behalf of the buyer group.
The move will help tackle about $376 million in debt.
A bankruptcy court has to OK the sale.
Hooters says restaurants are staying open
Multiple chain sales and store closings have affected Mississippi shoppers in recent months. Late last year, Hattiesburg-based Dirt Cheap closed all stores. National store closures including Forever21, Joann, Big Lots, Advance Auto Parts, Bargain Hunt and Party City. Other chains shuttering some stores include JCPenney, Kohl’s and Macy’s.
Last year, Hooters closed more than 40 stores, citing “pressure from current market conditions.”
But for now, Hooters says it’s business-as-usual. Franchise operations won’t be affected at all, though company-owned locations are being considered during the restructuring.
“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, chief executive officer of Hooters of America said in a statement issued Monday.
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Where can I eat at Hooters in Mississippi?
According to the Hooters website, there are 2 restaurants in Mississippi:
- 9495 Highway 49, Gulfport.
- 982 Goodman Road, Horn Lake.
Contributing: Reuters reporting by Dietrich Knauth
Bonnie Bolden is the Deep South Connect reporter for Mississippi with Gannett/USA Today. Email her at [email protected].
