Hooters in Bankruptcy Talks: What We Know So Far
Published Feb 21, 2025 at 6:48 PM ESTUpdated Feb 21, 2025 at 7:31 PM EST
www.newsweek.com
Hooters is reportedly preparing to file for bankruptcy in the coming months, according to a Bloomberg article published on Friday that reveals the chicken wing chain is looking to restructure its business.
Have men become indifferent?
Newsweek has reached out to Hooters for comment via email.
Why It Matters
Many restaurants have filed for bankruptcy or significantly updated their ordering systems in an attempt to stay financially afloat in the years following the COVID-19 pandemic.
More than 30 restaurant chains and large franchisees like Red Lobster and TGI Fridays ended up seeking debt protection last year, according to Restuarant Business.
When Will Hooters File for Bankruptcy?
Hooters—famous for putting female employees, who are known as "Hooters Girls," in revealing uniforms—is reported to be working with law firm Ropes & Gray to prepare a bankruptcy filing this year, likely within the next several months.
Previously, the Atlanta-based fast casual chain was working on dealing with its debt load with lawyers and advisers at Accordion Partners.
In recent years, Hooters saw customer foot traffic decline and had to close many locations across the country.
In 2021, the restaurant chain sold roughly $300 million in asset-backed bonds. Hooters currently has about 300 locations nationwide.
Higher menu prices have also caused many customers to forgo dining out over concerns of affordability.
From 2015 to 2024, restaurant prices surged 44 percent, according to Black Box Intelligence. Grocery prices, on the other hand, have climbed just 26 percent.
What People Are Saying
Alex Beene, a financial literacy instructor for the University of Tennessee at Martin, told Newsweek:
"Hooters and similar restaurants are getting hit by three factors concurrently. The higher prices on food supplies equate to higher meal costs. Consequently, more expensive dishes means fewer consumers are dining out. The third factor many don't consider are rising rents on many restaurant locations, which also add to pricing pressures. It's the perfect storm of negative news to make some restaurant chains consider filing for bankruptcy and using the financial opportunity to restructure into a leaner and more cost-effective company."
What Happens Next
Waitress demonstrates what you will look like if you eat at Hooters.
As Hooters reportedly looks into its bankruptcy options, the company may negotiate a deal with its creditors to have a more sustainable business model.
Published Feb 21, 2025 at 6:48 PM ESTUpdated Feb 21, 2025 at 7:31 PM EST
Hooters in bankruptcy talks: What we know so far
In recent years, the restaurant chain saw customer foot traffic decline and had to close many locations across the country.
www.newsweek.com
Hooters is reportedly preparing to file for bankruptcy in the coming months, according to a Bloomberg article published on Friday that reveals the chicken wing chain is looking to restructure its business.
Have men become indifferent?
Newsweek has reached out to Hooters for comment via email.
Why It Matters
Many restaurants have filed for bankruptcy or significantly updated their ordering systems in an attempt to stay financially afloat in the years following the COVID-19 pandemic.
More than 30 restaurant chains and large franchisees like Red Lobster and TGI Fridays ended up seeking debt protection last year, according to Restuarant Business.
When Will Hooters File for Bankruptcy?
Hooters—famous for putting female employees, who are known as "Hooters Girls," in revealing uniforms—is reported to be working with law firm Ropes & Gray to prepare a bankruptcy filing this year, likely within the next several months.
Previously, the Atlanta-based fast casual chain was working on dealing with its debt load with lawyers and advisers at Accordion Partners.
In recent years, Hooters saw customer foot traffic decline and had to close many locations across the country.
In 2021, the restaurant chain sold roughly $300 million in asset-backed bonds. Hooters currently has about 300 locations nationwide.
Higher menu prices have also caused many customers to forgo dining out over concerns of affordability.
From 2015 to 2024, restaurant prices surged 44 percent, according to Black Box Intelligence. Grocery prices, on the other hand, have climbed just 26 percent.
What People Are Saying
Alex Beene, a financial literacy instructor for the University of Tennessee at Martin, told Newsweek:
"Hooters and similar restaurants are getting hit by three factors concurrently. The higher prices on food supplies equate to higher meal costs. Consequently, more expensive dishes means fewer consumers are dining out. The third factor many don't consider are rising rents on many restaurant locations, which also add to pricing pressures. It's the perfect storm of negative news to make some restaurant chains consider filing for bankruptcy and using the financial opportunity to restructure into a leaner and more cost-effective company."
What Happens Next
Waitress demonstrates what you will look like if you eat at Hooters.
As Hooters reportedly looks into its bankruptcy options, the company may negotiate a deal with its creditors to have a more sustainable business model.
