Hooters has filed for bankruptcy in Texas while ensuring continued operations, with the brand's founders stepping in to take control of many locations from the current owners. The restaurant chain, recognized for its chicken wings and distinctive serving staff attire, aims to transition all locations to franchise ownership following the bankruptcy process.
Hooters Enters Bankruptcy: Founders to Acquire Restaurant Locations
Hooters Enters Bankruptcy: Founders to Acquire Restaurant Locations
Hooters restaurants will operate as normal during bankruptcy proceedings, as founders prepare to buy back many locations from private equity ownership.
As Hooters navigates its bankruptcy filing with the intention to maintain its operations, a statement from the company reassured customers that “the renowned Hooters restaurants are here to stay.” The chain, boasting over 400 locations across the United States and internationally, will see its company-owned restaurants acquired by a consortium led by its founders, who currently manage around a third of the franchised outlets.
This move aims to protect the brand's identity and operational continuity. With signs of financial turmoil surfacing over the past few weeks, which included the closure of numerous restaurants last summer, Hooters is taking strategic steps to rejuvenate its business. Neil Kiefer, CEO of a company that operates original Hooters outlets, indicated plans for a rebranding initiative titled “re-Hooterization,” suggesting a potential shift away from the brand’s traditional "bikini nights."
Franchise operations and some international locations will remain unaffected by the bankruptcy process, allowing Hooters to continue its legacy while adapting to changing market conditions. With the transition to a franchise model expected post-bankruptcy, Hooters seeks to stabilize and revitalize its brand identity amidst ongoing challenges in the restaurant sector.
This move aims to protect the brand's identity and operational continuity. With signs of financial turmoil surfacing over the past few weeks, which included the closure of numerous restaurants last summer, Hooters is taking strategic steps to rejuvenate its business. Neil Kiefer, CEO of a company that operates original Hooters outlets, indicated plans for a rebranding initiative titled “re-Hooterization,” suggesting a potential shift away from the brand’s traditional "bikini nights."
Franchise operations and some international locations will remain unaffected by the bankruptcy process, allowing Hooters to continue its legacy while adapting to changing market conditions. With the transition to a franchise model expected post-bankruptcy, Hooters seeks to stabilize and revitalize its brand identity amidst ongoing challenges in the restaurant sector.
