Hooters Files for Bankruptcy

• Hooters of America filed for bankruptcy in Texas on March 31, 2025, intending to sell all 151 company-owned restaurants to a group of two franchisees, including one backed by founders, as part of a financial restructuring.
• The company has assured customers that all restaurants will remain open during this process, supported by $35 million in financing, while the buyer group considers plans to make the brand more family-friendly.

Hooters of America, the famous casual dining chain, filed for bankruptcy in Texas as it pursues financial rehabilitation. The company intends to sell its 151 company-owned restaurants to a group that includes two franchisees and some of its founders. This group also includes two franchisees presently operating some of Hooters’ highest-grossing establishments.

Throughout this bankruptcy proceeding, Hooters has assured that its restaurants will remain open and operate on business as usual. The patrons will, therefore, continue to savour the chain’s signature American bar food and, of course, devour unbroken chicken wings.

Hooters Struggles with High Operational Costs

Like many casual dining chains, Hooters has experienced difficult years that have caused rising costs, rising wages, and changes in customers’ spending habits. These pressures have strained the company’s finances, contributing to a Chapter 11 bankruptcy filing, though Hooters continues operations with plans to restructure its $376 million debt. CEO Sal Melilli expressed optimism, stating that the bankruptcy is a key step toward strengthening the company’s financial foundation and ensuring a robust future for Hooters.

A Fresh Start with New Leadership

As part of the restructuring plan, Hooters intends to sell its corporate restaurants to a group that includes several of the chain’s founders. This new ownership group has a vision of what the future holds for Hooters, with promises to return to the company’s roots. Part of that vision is to increase family-friendliness at Hooters in an attempt to reach a broader audience and diversify its customer base.

The sale is subject to approval by a US bankruptcy judge, but the company hopes that the deal will be finalised in a month or two. The exact value of the sale has not been disclosed as of late, but according to the new owners, Hooters will be starting a new era and be revived.

Hooters: An Old Footprint, A New Walk

Founded in 1983, Hooters became famous not just for the chicken wings but also for its unique and distinctive service featuring the “Hooters Girls” in fitted attire. This peculiar image has contributed to the creation of the brand over many years but now finds itself in a position where it must evolve. The buyer group, including founders and experienced franchisees, aims to adapt Hooters to modern times while preserving core elements that fuel its popularity.

As bankruptcy permits, the Hooters brand thus continues on two fronts: to maintain a legacy and, on the side, to modernise in line with contemporary dining happenings. For now, customers can savour the original Hooters experience while the brand strides toward the sustainability of the future.

The bankruptcy filing begins a new chapter for Hooters; an intelligent rework will enable the brand to rise anew, ready to face the challenges of a new era of casual dining.