Hooters, which happens to be the iconic restaurant chain known for its orange-clad wait staff and chicken wings, has unfortunately filed for bankruptcy.
The company sadly announced this news on April 1, 2025.
Despite the bankruptcy filing, Hooters assured customers and employees that it will continue operations and is not going anywhere.
As part of the bankruptcy process, the company plans to sell all of its 100 company-owned locations to two franchisee groups that operate Hooters in the Tampa, Florida, as well as Chicago areas.
Together, these groups currently own a third of the US franchised locations. This move is part of Hooters’ strategy to reorganize as well as strengthen its financial foundation while dealing with tough business conditions.
In doing so, Hooters joins other fast-casual chains, like Red Lobster and BurgerFi, which have also filed for bankruptcy in recent years due to rising food and labor costs.
In addition to financial struggles, the company has faced legal challenges, including lawsuits related to racial and gender discrimination. Last year, it closed several restaurants, citing financial difficulties.
The company filed for Chapter 11 bankruptcy protection in Texas court, which allows it to reorganize its debts and business operations.
Moreover, Hooters has indicated it may close some locations during the bankruptcy process, but it plans to exit Chapter 11 in about 90 to 120 days.
In a statement, CEO Sal Melilli emphasized that the brand is committed to delivering the same “guest-obsessed hospitality experience” that customers expect.
Hooters was acquired by private equity firms Nord Bay Capital and TriArtisan Capital Advisors in 2019, and the current turnaround plan aims to make the chain more family-friendly while returning to its roots, according to Neil Kiefer, CEO of one of the franchisee groups.