Hooters Declares Bankruptcy – Here’s What Happens Next

Hooters Files for Bankruptcy but Promises to Stay Open

Hooters, the iconic restaurant chain famous for its wings and all-female waitstaff in bright orange uniforms, has filed for bankruptcy. However, the decades-old brand assures customers that it isn’t going away anytime soon.

As part of its bankruptcy plan, Hooters will sell all 100 of its company-owned restaurants to two franchisee groups that already operate locations in Tampa, Florida, and Chicago. This combined group currently owns about a third of all franchised Hooters locations in the U.S., according to the company’s statement.

Despite financial struggles, Hooters says it will continue operating as usual. The company has filed for Chapter 11 bankruptcy protection in a Texas court, a strategic move to reorganize and stabilize its business. The goal is to emerge from bankruptcy in 90 to 120 days while evaluating which locations will remain open.

Like many casual dining chains, Hooters has faced mounting challenges, including:

Rising food and labor costs
Increased competition in the fast-casual dining space
Legal troubles, including lawsuits related to racial and gender discrimination
Closures of several locations in recent years

Other restaurant chains, such as BurgerFi and Red Lobster, have also filed for bankruptcy in the face of similar struggles.

Hooters’ bankruptcy also comes with a major leadership shift. The buyer group includes original Hooters founders, led by Neil Kiefer, CEO of franchisee group Hooters Inc.

Kiefer expressed optimism about the future, noting that private equity firms have owned Hooters for years without deep experience in the brand. He believes the founder-led buyout will return Hooters to its roots while modernizing its approach.

One key change? A more family-friendly dining experience. In a recent interview with Bloomberg News, Kiefer shared plans to refresh the brand while maintaining its signature appeal.