Hooters files for bankruptcy as chain’s founders – Business News
Restaurant chain Hooters of America filed for bankruptcy in Texas on Monday, looking for to deal with its $376 million debt by promoting all of its company-owned eating places to a franchise group backed by the company’s founders.
Hooters, like different informal eating eating places, has struggled lately on account of inflation, the high prices of labor and food, and declining spending by cash-strapped American shoppers.
The restaurant chain not too long ago introduced a “re-Hooterization” effort round crafting a more family-friendly image, enhancing service instances and utilizing more energizing ingredients.
Waitresses wearing orange shorts and t-shirts cheers whereas welcoming the coming visitors on the Hooters restaurant in Beijing, China. AP
Hooters on Monday filed for bankruptcy in Texas to deal with its $376 million debt. Getty Images
The company at present immediately owns and operates 151 places, with one other 154 eating places operated by franchisees, primarily within the United States.
The privately-owned company, which shares a non-public equity proprietor with recently-bankrupt TGI Fridays, intends to sell all corporate-owned places to a purchaser group comprised of two present Hooters franchisees, who operate 30 high-performing Hooters places within the US, primarily in Florida and Illinois.
Hooters didn’t disclose the acquisition price of the transaction, which should be permitted by a U.S. bankruptcy decide earlier than it turns into ultimate.
Founded in 1983, Hooters grew to become well-known for its chicken wings and its servers’ uniform of orange shorts and low-cut tank tops.
The purchaser group is backed by some of Hooters’ authentic founders, and it pledged to take Hooters “back to its roots.”
“With over 30 years of hands-on experience across the Hooters ecosystem, we have a profound understanding of our customers and what it takes to not only meet, but consistently exceed their expectations,” stated Neil Kiefer, a member of the customer group and the present CEO of the unique Hooters’ location in Clearwater, Florida.
Founded in 1983, Hooters grew to become well-known for its chicken wings and its servers’ uniform of orange shorts and low-cut tank tops. Stephen Yang for the New York Post
Hooters stated it expects to finish the deal and emerge from bankruptcy in three to 4 months.
The company has lined up about $35 million in financing from its present lender group to finish the bankruptcy transaction.
Casual eating eating places have been hammered by rising prices in 2024, with well-known chains like TGI Fridays, Red Lobster, Bucca di Beppo, and Rubio’s Coastal Grill all submitting for bankruptcy final 12 months.
Restaurant costs have risen about 30% within the final 5 years, outpacing client costs total, in accordance with the Federal Reserve Bank of St. Louis.
