Hooters files for bankruptcy and unveils a new ‘family-friendly’ plan aimed at keeping its restaurants open and operational.
Hooters, the popular restaurant chain known for its chicken wings and waitstaff, has filed for bankruptcy protection.
The company has revealed that it is facing substantial debt, amounting to $376 million.
This financial struggle has led Hooters to rethink its approach and make significant changes to its operations.
Hooters files for bankruptcy amid financial struggles.
Hooters operates 151 restaurants in the United States and has another 154 locations run by franchisees.
The chain has been famous for its casual dining environment and has attracted many customers over the years.
However, like many restaurants, Hooters has faced challenges due to changing market conditions and increased competition.
To address these issues, Hooters has decided to file for Chapter 11 bankruptcy. This legal process allows businesses to reorganize their debts while still continuing to operate.
Hooters’ CEO, Sal Melilli, expressed optimism, stating that the restaurants would remain open and serve their loyal customers during this transition.
“Today’s announcement marks an important milestone in our efforts to reinforce Hooters’ financial foundation and continue delivering the guest-obsessed hospitality experience and delicious food our customers and communities have come to expect.”
Hooters introduces ‘family-friendly’ strategy to sustain restaurant operations
In a bid to revitalize the brand, Hooters plans to adopt a more family-friendly approach.
The company intends to sell over 100 company-owned locations to two franchisees.
These new franchisees have committed to transforming Hooters into a dining experience that is suitable for families.
This shift aims to attract a broader audience while maintaining the chain’s core offerings.
CEO Sal Melilli emphasized the importance of this change.
He stated that the company is grateful for the support of customers and employees as they move forward with these plans.
The hope is that by going back to its roots, Hooters can strengthen its financial foundation and improve customer satisfaction.
“I’ve seen firsthand the incredible value and opportunities our brand brings to life, and I look forward to continuing that momentum well into the future,” Melilli continued.
“I’m incredibly grateful to our valued customers, partners, and employees for their continued support.”
Despite the bankruptcy filing, Hooters will continue to operate its restaurants.
The company assures customers that it will not disrupt their dining experience during this transition period.
Locations outside the United States will not be affected either, allowing Hooters to maintain its international presence.
Hooters aims to complete its restructuring within 90 to 120 days. The company plans to exit Chapter 11 bankruptcy as it implements its new strategy.
This timeframe will allow them to make the necessary adjustments and emerge stronger.
The future of Hooters
Looking ahead, Hooters is committed to simplifying its operations. The plan includes adopting a pure franchise model.
This approach aims to maximize the brand’s growth potential and ensure long-term sustainability.
Hooters has been a recognizable name in the restaurant industry for over 30 years.
The leadership team believes that returning to its core values will help restore its success.
Neil Kiefer, CEO of Hooters Inc., added on behalf of the Buyer Group: “With over 30 years of hands-on experience across the Hooters ecosystem, we have a profound understanding of our customers and what it takes to not only meet, but consistently exceed their expectations.
“As we look toward the future, we are committed to restoring the Hooters brand back to its roots and simplifying HOA’s operations by adopting a pure franchise model that will maximize the potential for sustainable, long-term growth.
“The foundation we’ve laid ensures the continued success of our brand – one that is driven by a relentless focus on delivering an exceptional experience each and every visit for our customers.”