Wings, Woes, and a Wild Pivot
• Hooters announces Chapter 11 bankruptcy, aiming to shed $380M in debt through franchise-led restructuring
• Founder-led buyout group steps up to acquire all company-owned restaurants, promising a return to brand roots
• The chain’s plan echoes broader struggles in the casual-dining industry amid inflation, lawsuits, and shifting consumer habits
By Samuel A. Lopez – USA Herald
Hooters, the iconic Atlanta-based restaurant chain known for its wings, signature orange shorts, and beachy bar-and-grill vibe, has filed for Chapter 11 bankruptcy protection in the U.S. Bankruptcy Court for the Northern District of Texas. The filing, made late Monday, lists approximately $380 million in funded debt and proposes a sweeping restructuring strategy that could redefine the brand’s future.
But don’t hang up the orange tank tops just yet. Hooters says it’s not closing up shop—it’s rebooting.
In a statement released through its legal team at Ropes & Gray LLP, Hooters of America announced that it had reached a “near unanimous” agreement with key stakeholders to shed its corporate-owned restaurants and trade debt in exchange for equity. The chain plans to offload all 100 of its company-owned locations to a pair of franchise groups—one of which includes the original Hooters founders.
