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

The bankruptcy is expected to have minimal impact on Hooters’ 154 franchised locations, most of which remain operational. The company stated that it will continue to assess its “operational footprint,” which suggests some underperforming sites could still face closure. But overall, the brand’s leaders are portraying this as a proactive reset rather than a sign of collapse.

“Our renowned Hooters restaurants are here to stay,” Kiefer emphasized.

That reassurance is crucial. While Hooters may still draw a nostalgic crowd, the brand has also faced criticism for being out of step with modern sensibilities. In 2019, private equity firms Nord Bay Capital and TriArtisan Capital Advisors acquired the company with the stated goal of making it more family-friendly—a plan that received mixed reactions from long-time patrons and industry analysts alike.

Hooters’ bankruptcy marks another domino in the steady unraveling of traditional dine-in chains. As inflation eats into discretionary spending and delivery apps reshape eating habits, brands that once thrived on dine-in experiences are finding themselves increasingly out of touch.