Hooters is going bust. Put not intended.
The iconic U.S. restaurant chain, famous for wings and its skimpy “Hooters Girls” uniforms, just filed for bankruptcy protection. HOA Restaurant Group filed for Chapter 11 on Monday in a Dallas court.
Another blow to legacy restaurant chains. Rising food and labor costs, shifting customer preferences, and trendier rivals like Shake Shack are taking a toll.
They’re not alone. Red Lobster, TGI Fridays, and Buca di Beppo all filed last year. On the Border filed just last month.
The bankruptcy plan includes a big shakeup. 100 company-owned U.S. Hooters locations will be sold to a group of franchisees.
These franchisees already run 14 of the top 30 Hooters restaurants. Some of them are original founders of the chain, according to the company.
“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 Neil Kiefer, CEO of Hooters Inc.
He added, “As a result of these transactions, the Hooters brand will once again be in the hands of highly experienced Hooters franchisees and we will be well-positioned to return this iconic brand to its historic success.”