BANGKOK – Hooters, the well-known U.S.-based restaurant chain famous for its chicken wings and signature Hooters Girls uniforms, has officially filed for Chapter 11 bankruptcy protection.
The filing, submitted by HOA Restaurant Group on Monday in the North Texas Bankruptcy Court in Dallas, comes as the company struggles with mounting financial difficulties. However, Hooters has vowed to keep its restaurants open while it works to resolve its economic challenges over the next few months.
Founders Step In to Keep Hooters Afloat
In an effort to stabilize operations, a group of Hooters’ original founders, who already own nearly one-third of the U.S. locations, plan to acquire and operate more outlets. This includes some of the chain’s highest-performing restaurants.
The company reassured its customers in a public statement, saying:
“Our renowned Hooters restaurants are here to stay, and we are taking action to strengthen our business to better serve our valued customers over the long term.”
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A History of Business Challenges
Founded in 1983 in Clearwater, Florida, Hooters has faced multiple hurdles over the years, from financial setbacks to legal battles and shifts in consumer preferences.
- Sponsorship Loss: Hooters had been a sponsor of NASCAR’s No. 9 car driven by Chase Elliott since 2017, but in 2023, Hendrick Motorsports severed ties with the company due to its failure to meet financial commitments.
- Employment Lawsuits: The restaurant chain has been criticized for its controversial hiring practices, which focus on hiring “Hooters Girls” to serve customers. Last year, it settled a race and color discrimination lawsuit with the U.S. Equal Employment Opportunity Commission, paying $250,000 over allegations at a Greensboro, North Carolina location.
- Rebranding and Expansion Attempts: In 2017, Hooters experimented with a restaurant concept that did not feature its signature revealing uniforms, aiming to attract a broader customer base.
- Las Vegas Closure: In 2019, the Hooters Hotel and Casino off the Las Vegas Strip was sold to Indian hospitality company OYO and rebranded as OYO Hotel and Casino.
Is This the End for Hooters?
Despite rumors in 2022 that Hooters was shutting down completely, the company denied the claims, stating that it was simply adapting to modern dining trends.
For now, Hooters insists it will continue serving customers as it works through the bankruptcy process, but whether it can overcome its financial struggles remains to be seen.
