Hooters, the American restaurant chain famously known for its chicken wings and the “Hooters Girls” in revealing uniforms, is going through tough times. On Monday, HOA Restaurant Group, the company that runs Hooters, filed for Chapter 11 bankruptcy protection in Dallas, Texas. While this may sound alarming, the company has made it clear—they’re not closing down for good.
Why Hooters Filed for Bankruptcy
Hooters has been struggling with rising debt and financial pressure for some time now. Filing for Chapter 11 means the company is asking the court to help reorganize its debts while continuing to operate. This gives Hooters some breathing space to manage its money and plan a way forward.
Despite the bankruptcy, Hooters says its doors will stay open. In fact, a group made up of the company’s original founders already owns about one-third of Hooters restaurants in the U.S., including many of the busiest ones. This group is planning to buy and run even more locations, which could help the company bounce back faster.
A Look at Hooters’ History and Challenges
Hooters started back in 1983 in Clearwater, Florida, and is now based in Atlanta. It became popular for its mix of American comfort food and its unique brand image centered around attractive female wait-staff. Over the years, the brand grew quickly, but not without controversy.
There have been multiple lawsuits against Hooters for its hiring practices, including claims of discrimination. One of the more recent cases in 2023 saw the company pay $250,000 to settle a lawsuit over race and color discrimination at a location in North Carolina.
The company has also faced public criticism for its outdated image in a world that’s becoming more focused on inclusion and respect in the workplace. In fact, back in 2017, Hooters tested out a new restaurant concept without the usual skimpy uniforms—possibly to see if a more modern version of their idea could attract different customers.
Business Setbacks and Sponsorship Issues
Hooters has seen some setbacks in the business world as well. It had been sponsoring NASCAR driver Chase Elliott since 2017, but last year, that partnership came to an end. Hendrick Motorsports ended the sponsorship because Hooters wasn’t able to keep up with its financial commitments.
In 2019, another sign of change was seen when the Hooters hotel and casino in Las Vegas was sold and rebranded as OYO Hotel and Casino, signaling a step away from the traditional Hooters branding.
And although the company denied reports in 2022 that it was shutting down or changing its brand entirely, the signs of struggle were already showing.
What’s Next for Hooters?
According to a notice on its website, Hooters is confident about its future. The company says that once it reorganizes and comes out of bankruptcy, it will have a stronger financial base and more efficient operations. It still wants to deliver its classic food and service to loyal customers across the U.S.
It’s clear the brand is aiming to move forward, not fade away. With help from the original founders and a new focus on managing its business better, Hooters hopes to continue serving customers for years to come.