Hooters Files for Bankruptcy, Plans to Sell Company-Owned Restaurants

Hooters, the iconic restaurant chain known for its orange-clad wait staff and chicken wings, has filed for bankruptcy, the company announced. However, the brand insists it’s not going away, CNN reported.

After closing dozens of restaurants last year, Hooters expects to emerge from Chapter 11 bankruptcy within 90 to 120 days. I Photo: Hooters Facebook

As part of its restructuring, Hooters plans to sell all 100 company-owned locations to two franchisee groups that already operate Hooters restaurants in Tampa, Florida, and Chicago.

The two groups collectively own one-third of all U.S. franchised locations.

Hooters joins other struggling restaurant chains, including BurgerFi and Red Lobster, in filing for bankruptcy amid rising food and labor costs. In addition, the company has faced multiple lawsuits, including allegations of racial and gender discrimination.

After closing dozens of restaurants last year, Hooters expects to emerge from Chapter 11 bankruptcy within 90 to 120 days.