Bankruptcy and Sale Plans
filed for Chapter 11 bankruptcy protection in , aiming to address $376 million in debt by selling all 151 company-owned restaurants to a franchisee-backed buyer group, including the original Hooters founders.
The company plans to exit Chapter 11 bankruptcy in approximately 90-120 days, with the sale expected to close in three to four months, ensuring operational continuity during the restructuring process.
Operational and Strategic Changes
The buyer group, comprising two current franchisees and the original Hooters founders, aims to make the chain more family-friendly and "back to its roots," despite previous ownership by private equity firms.
Hooters is evaluating its operational footprint, which may involve closing some locations. The company's current franchise operations outside the U.S. remain unaffected by the Chapter 11 process.