Hooters: Restaurant chain files for bankruptcy

Hooters of America has filed for bankruptcy in Texas, as it tries to deal with its debts by selling all of its company-owned restaurants to a group backed by its founders.

The firm currently directly owns and operates 151 restaurants, with another 154 operated by franchisees, mainly in the US.

The company said its restaurants, which serve classic American bar food, will stay open during the process and operate “in a business-as-usual manner”.

Like many other casual dining chains, Hooters has struggled in recent years as it faces rising costs and wages, as well as customers spending less.

“Our renowned Hooters restaurants are here to stay,” Sal Melilli, chief executive of Hooters of America, said in a statement.

“Today’s announcement marks an important milestone in our efforts to reinforce Hooters’ financial foundation.”

The firm said it plans to sell all of its corporate-owned restaurants to a group of two existing Hooters franchisees, who operate 14 of Hooters’ most popular outlets, around the Tampa, Florida, and Chicago, Illinois, areas.

The group includes some of the chain’s founders, who have promised to take the firm “back to its roots” and make it more family-friendly.

Hooters did not reveal the value of the planned deal, which still needs to be approved by a US bankruptcy judge.

It said the rescue plan is expected to be completed within the next four months.

Hooters was founded in 1983 and is known for its serving staff, who are mainly young women – known as “Hooters Girls” – as well as its chicken wings.

The form-fitting outfits worn by its waiting staff have become central to the chain’s public image.