Hooters is reportedly in serious financial turmoil and may potentially file for bankruptcy.
Bloomberg News reveals that the restaurant chain, known for its waitresses in tight-fitting outfits, is currently working with creditors to devise a plan for restructuring its operations. To assist with this process, the company has engaged the law firm Robes & Gray.
Although no decision has been made about filing for Chapter 11 protection, sources suggest a filing could take place within the next two months. This follows a history of financial challenges for Hooters, including its 2019 acquisition by Nord Bay Capital and TriArtisan Capital Advisors. In 2021, the company raised about $300 million in asset-backed bonds, and if it fails to repay its debts, creditors might sell off its assets.
As part of its restructuring, Hooters closed 40 underperforming locations across the country in 2023, specifically in Rhode Island, Florida, Kentucky, Texas, and Virginia. The company addressed these closures in a statement to Nation’s Restaurant News, saying, “Like many restaurants under pressure from current market conditions, Hooters has made the difficult decision to close a select number of underperforming stores.”
Hooters still operates approximately 300 locations worldwide and continues to expand with new restaurants and frozen products at grocery stores.
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