Dallas, Texas – Hooters, a well-known US-based restaurant chain recognized for its signature chicken wings and servers in revealing uniforms, has taken a significant step in seeking financial protection by filing for bankruptcy under Chapter 11. The move was initiated by HOA Restaurant Group, and the case was filed in a north Texas bankruptcy court in Dallas on Monday.
Despite facing mounting debts, the company is determined to stay afloat and overcome its financial challenges in the coming months. A ray of hope shines through as a group of the original founders of Hooters, who collectively own nearly one-third of the chain’s US locations, including approximately half of its highest-producing restaurants, have expressed intentions to acquire and manage more outlets, as stated in a recent press release by Hooters.
In a reassuring message on its website, the Atlanta, Georgia-based company reassured customers of its commitment to enduring presence, stating, “Our renowned Hooters restaurants are here to stay, and we are taking action to strengthen our business to better serve our valued customers in the long term.” Hooters, established in Clearwater, Florida, in 1983, had been facing challenges in recent times.
Efforts to steer the company towards financial stability were apparent as it sponsored the No. 9 Nascar car driven by Chase Elliott since 2017. However, its relationship with Hendrick Motorsports came to an end last year due to failure in meeting financial obligations. Legal disputes, including gender discrimination lawsuits, have also plagued the restaurant chain over the years.
Last year, Hooters agreed to a settlement of $250,000 plus additional measures to resolve a race and color discrimination lawsuit brought by the US Equal Employment Opportunity Commission against a Hooters establishment in Greensboro, North Carolina. Reports claiming a shutdown and rebranding due to shifting consumer preferences were denied by the company in 2022.
The Hooters hotel-casino near the Las Vegas Strip underwent a transition in ownership in 2019, being sold to an Indian hotel company and rebranded as the Oyo Hotel and Casino. Moreover, in 2017, the company experimented with a new dining concept that excluded servers in the trademark revealing uniforms as a potential evolution of its original business model.