Hooters, the American restaurant chain famous for its chicken wings and waitresses known as “Hooters Girls” in revealing outfits, has declared bankruptcy.
HOA Restaurant Group filed for Chapter 11 bankruptcy protection on Monday in the North Texas Bankruptcy Court located in Dallas.
The company’s mounting debt led to its financial difficulties. However, it intends to remain open and resolve these issues in the coming months. A group comprising the original founders, who collectively own almost a third of the Hooters locations in the U.S. – including approximately half of its highest-grossing restaurants – plans to acquire and manage even more outlets, according to a company press release.
“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,” the company stated on its website.
Hooters, headquartered in Atlanta, Georgia, was established in Clearwater, Florida, in 1983. The company has faced challenges for some time.
Hooters had been the sponsor of Chase Elliott’s No. 9 NASCAR car since 2017. However, Hendrick Motorsports ended its partnership last year due to the sponsor’s failure to meet its financial obligations.
The company’s business model has faced various hurdles, including lawsuits regarding its exclusive hiring of “Hooters Girls” as servers.
Last year, Hooters agreed to pay $250,000 and provide other forms of compensation to resolve a race and color discrimination lawsuit filed by the U.S. Equal Employment Opportunity Commission against a Hooters restaurant in Greensboro, North Carolina.
In 2022, the restaurant chain denied rumors that it was closing down and rebranding in response to evolving customer preferences.
In 2019, the Hooters hotel-casino located off the Las Vegas Strip was sold to an Indian hotel group and subsequently rebranded as the OYO Hotel and Casino.
In 2017, the company experimented with a restaurant concept that did not feature servers in revealing attire, exploring an alternative approach to its original model.
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