01.04.2025 17:02
The famous American restaurant chain Hooters of America, known for its waitstaff's distinctive attire and serving customers for 40 years, has filed for bankruptcy.
Founded in 1983 in Florida, Hooters of America is waving the white flag of bankruptcy. According to a report by the BBC, Hooters of America aims to sell all its restaurants to a group with the support of its founders. This move is expected to help the company pay off its debts. The company currently directly owns 151 restaurants and has transferred 154 restaurants to franchise owners.
THE COMPANY IS FACING ECONOMIC CHALLENGES
The company announced that the bankruptcy process will not affect the operations of the restaurants. The restaurants, which serve classic American bar food, will continue to operate. Hooters is facing challenges due to rising costs and a decline in customer spending in recent years.
"OUR RESTAURANTS WILL CONTINUE TO STAY"
Hooters of America CEO Sal Melilli stated that they have taken significant steps to strengthen the company's financial structure. Melilli said, "Our Hooters restaurants will continue to stay here. Today's announcement represents an important milestone in our efforts to strengthen Hooters' financial foundations."
A 4-MONTH PROCESS
Hooters plans to sell 14 popular restaurants located in Tampa, Florida, and Chicago, Illinois, to the current franchise owners. This process is seen as one of the company's restructuring steps. The founders of the company have promised to "return the brand to its roots" and make it more family-friendly. While Hooters did not disclose the value of the deal, the rescue plan, which will be submitted for approval to the U.S. bankruptcy court, is expected to be completed within four months.