Hooters may potentially file for bankruptcy.
Bloomberg News reports that the restaurant chain, famous for outfitting its waitresses in very tight-fitting clothes, is working with creditors to create a plan for restructuring its operations.
The company is reportedly working with the law firm Robes & Gray to assist with the restructuring process.
So far, no decision on whether Hooters will seek Chapter 11 protection has been made — but a filing could reportedly happen within the next two months.
Hooters has had its fair share of financial troubles in recent years. In 2019, it was acquired by Nord Bay Capital and TriArtisan Capital Advisors.
Back in 2021, the company raised approximately $300 million in asset-backed bonds. If the company isn’t able to make good on its debt, the lenders could choose to sell off those assets.
Last year, Hooters closed 40 locations across the country that it deemed to be underperforming — specifically in Rhode Island, Florida, Kentucky, Texas, and Virginia.
In a statement to Nation’s Restaurant News in 2024, Hooters responded to the closures.
“Like many restaurants under pressure from current market conditions, Hooters has made the difficult decision to close a select number of underperforming stores,” read the statement. “Ensuring the well-being of our staff is our priority in these rare instances.”
“With new Hooters restaurants opening domestically and internationally, new Hooters frozen products launching at grocery stores, and the Hooters footprint expanding into new markets with both company and franchise locations, this brand of 41 years remains highly resilient and relevant,” continued the statement. “We look forward to continuing to serve our guests at home, on the go and at our restaurants here in the U.S. and around the globe.”
Hooters still owns approximately 300 restaurants around the world.