Chain aims for swift exit and promises no closures
Hooters of America, the iconic sports bar and grill chain, filed for bankruptcy on Monday in Texas after accumulating $376 million in debt, according to Reuters. The company plans to sell 151 corporate-owned restaurants to a buyer group that already operates 30 Hooters locations, pending court approval.
The buyer group includes original Hooters founders and franchisees who aim to take the brand “back to its roots.” Neil Kiefer, CEO of the original Hooters in Clearwater, Florida, said the group has “a profound understanding of our customers” and a strategy to exceed their expectations.
Restructuring amid industry-wide struggles
Atlanta-based Hooters joins a growing list of casual dining chains facing challenges from inflation, rising labor costs, and changing consumer habits. Its private equity backer also owns TGI Fridays, which filed for Chapter 11 bankruptcy in November 2024 citing lingering effects from the COVID-19 pandemic.
Despite the financial restructuring, Hooters has no plans to close any locations. The company says it will maintain operations and continue delivering the “guest-obsessed hospitality experience” it has built over four decades.
Michigan locations and overall footprint
Hooters currently operates 305 locations globally—151 corporate-owned and 154 franchised. In Michigan, the chain has restaurants in:
- Flint
- Saginaw
- Taylor
According to its bankruptcy plan, Hooters expects to exit Chapter 11 in three to four months, following the completion of the transaction with the buyer group.
Menu and branding to stay intact
The company confirmed there will be no changes to its menu or brand identity as part of the restructuring. Hooters remains committed to its core offerings, including its famous chicken wings and signature customer service experience.
“Hooters is here to stay,” the company said in a statement on its website. “With a stronger financial foundation and streamlined operations, we are well-positioned for the future.”
