Hooters Goes Bankrupt as Founders Plot a Bold Comeback to Rescue the Brand

“Today’s announcement marks an important milestone in our efforts to reinforce Hooters’ financial foundation and continue delivering the guest-obsessed hospitality experience and delicious food our customers and communities have come to expect,” said Hooters of America CEO Sal Melilli in a press release.

The restructuring strategy is as much about branding as it is about balance sheets. Neil Kiefer, CEO of franchisee Hooters Inc., emphasized the founder-led buyout’s goal of returning to the brand’s roots.

“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 Kiefer. “This transition allows us to simplify operations and fully embrace a franchise model that reflects our core identity.”

The buyers already operate 30% of Hooters’ U.S. franchises, including 14 of the top 30 highest-performing locations. The new ownership group is poised to take over all corporate-run sites and pivot Hooters into a fully franchised chain.