Hooters – the restaurant chain first known for its orange-clad, all-female wait staff and then its chicken wings – has filed for bankruptcy, the company announced today.
But the decades-old brand said it wasn't going anywhere.
In the bankruptcy process, the company plans to sell all of its 100 company-owned restaurants to two franchisee groups that operate Hooters locations in the Tampa, Florida and Chicago areas.
The combined group collectively operates a third of the US franchise-owned locations, according to the press release.
Hooters joins other fast-casual restaurants, such as BurgerFi and Red Lobster, which filed for bankruptcy amid rough business conditions.
The company's workforce has also come under fire, with lawsuits ranging from racial discrimination to gender discrimination. Hooters closed dozens of restaurants last year, blaming rising food and labour costs.
The company said it planned to exit Chapter 11 bankruptcy in "approximately 90-120 days".
"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 the release.
Hooters filed for Chapter 11 bankruptcy protection in a Texas court, a common route for struggling companies hoping to solve their financial problems through reorganisation.
Row between music superstar and father costs one their life
Hooters said it would continue to operate its business as usual, although it said it was "evaluating the company's operational footprint" for its company-owned locations.
That meant it may end up closing some locations during its bankruptcy process. Private equity firms Nord Bay Capital and TriArtisan Capital Advisors bought Hooters in 2019.
The buyer group includes the original Hooters founders, including Neil Kiefer, CEO of franchisee group Hooters Inc.
"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 press release on Monday. In an interview with Bloomberg News last week, he said that the turnaround plan included making the chain more family friendly.
Kiefer said that the founder-led buyout would allow the brand to go "back to its roots," and the restaurant emphasised that: "Our renowned Hooters restaurants are here to stay."
DOWNLOAD THE 9NEWS APP: Stay across all the latest in breaking news, sport, politics and the weather via our news app and get notifications sent straight to your smartphone. Available on the Apple App Store and Google Play.
