Hooters Files for Bankruptcy But Says It’s Not Going Anywhere

After decades of wings, sports, and orange shorts, Hooters is entering a new chapter—but not closing the book.

The restaurant chain, best known for its signature wings and all-female waitstaff, officially filed for Chapter 11 bankruptcy protection on Monday. While the announcement might sound like the end of the road, Hooters says it’s using the filing as a reset—and making big moves behind the scenes to protect its future.

As part of the restructuring, Hooters will sell all 100 of its company-owned restaurants to two of its largest franchisee groups, which already operate locations in Tampa and Chicago. Together, those groups run about one-third of the franchised Hooters locations across the U.S.

In a statement, Hooters of America CEO Sal Melilli said, “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.”

While operations will continue, the company did note that it’s evaluating its footprint, which means some closures could still happen during the bankruptcy process.

Hooters has been under pressure for a while now. Last year, the brand closed dozens of locations, citing rising food and labor costs. Like other fast-casual chains such as Red Lobster and BurgerFi, it’s had to navigate changing customer habits, increased competition, and legal battles—including racial and gender discrimination lawsuits that have drawn scrutiny in recent years.

But this latest move signals a major shift in leadership. The buyers include members of the original Hooters founding team, led by Neil Kiefer, CEO of Hooters Inc., a longtime franchisee. In a press release, Kiefer made it clear: the goal is to bring the brand back to its roots—while evolving with the times.

“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,” said Kiefer. In an interview with Bloomberg, he shared that the turnaround plan includes making the chain more family-friendly, without abandoning what made the brand iconic.

Hooters was acquired by Nord Bay Capital and TriArtisan Capital Advisors back in 2019. The founder-led buyout marks a return to more familiar leadership with a long history tied to the original vision of the brand.

While the company is now under bankruptcy protection, Hooters says it expects to exit Chapter 11 within 90 to 120 days, with the goal of emerging stronger and more aligned with today’s dining landscape.