The Hooters of America restaurant chain requested bankruptcy protection in Texas on Monday, seeking to address its $ 376 million debt selling all its restaurants owned by the company to a group of franchises backed by the company’s founders.
Hooters, like other informal restaurants, have had problems in recent years due to inflation, high work and food costs and decreased expenditure of US consumers with liquidity problems. Currently, the company directly has and operates 151 locations, with another 154 restaurants operated by franchisees, mainly in the United States.
The private company, which is shared by a private capital owner with TGI Fridays recently bankruptcy, intends to sell all corporate property locations to a buying group composed of two existing hooters franchisees, which operate 30 locations of high -performance hooters in the US. UU., Mainly in Florida and Illinois.
Hooters did not reveal the purchase price of the transaction, which must be approved by a bankruptcy judge from the United States before it is final.
Founded in 1983, Hooters became famous for his chicken wings and the uniform of his orange shorts and sleeveless t -shirts.
The buyers group is backed by some of Hooters’ original founders, and promised to take Hooters “back to their roots.”
“With more than 30 years of practical experience throughout the Hooters ecosystem, we have a deep understanding of our clients and what is needed not only to meet, but constantly overcome their expectations,” said Neil Kiefer, a member of the buyer group and the current CEO of the original hooters location in Clearwater, Florida.
Hooters said he hopes to complete the agreement and arise from bankruptcy in three to four months. The company has aligned around $ 35 million in financing of its existing group of lenders to complete bankruptcy transaction.
Informal restaurants have been hammered by the increase in costs in 2024, with chains well known as TGI Fridys, Red Lobster, Bucca Di Beppo and the Coastal Grille of Rubio, they declare themselves in bankruptcy last year.
Restaurant prices have increased around 30% in the last 5 years, exceeding consumer prices in general, according to the Bank of the Federal Reserve of St. Louis.
