Hooters files for bankruptcy, restaurants will remain open

ATLANTA — Hooters of America, the iconic wing restaurant chain known for its scantily-clad all-female waitstaff, has filed for Chapter 11 bankruptcy protection as part of a plan to sell its company-owned locations to a group of franchisees.

The buyer group consists of two existing franchisees, including Hooters Inc., the original founders, who collectively operate over 30% of U.S. franchised Hooters locations. Hooters was purchased in 2019 by private equity firms Nord Bay Capital and TriArtisan Capital Advisors.

"Our renowned Hooters restaurants are here to stay," said Sal Melilli, Chief Executive Officer of Hooters of America, in a statement. "Today's announcement marks an important milestone in our efforts to reinforce Hooters' financial foundation."

The company expects to complete the bankruptcy process within 90-120 days. All Hooters restaurants will remain open during the restructuring, though the company said it is reviewing its "operational footprint" going forward, which could mean restaurant location closures in the future. 

Hooters joins other major restaurant chains like Red Lobster, TGI Friday's and On the Border that have filed for bankruptcy protection in recent months. 

Franchise operations, including international locations, are not affected by the bankruptcy filing.

Neil Kiefer, CEO of Hooters Inc., representing the buyer group, said they are "committed to restoring the Hooters brand back to its roots" by adopting a pure franchise model. After the Chapter 11 process is complete, all Hooters locations will be franchisee-owned.

The filing was made in the United States Bankruptcy Court for the Northern District of Texas.