Hooters, the casual dining chain known for its chicken wings and well-proportioned waitresses, is reportedly preparing to file for Chapter 11 bankruptcy as it struggles with declining foot traffic and significant debt.
The impending downfall of the iconic “breastaurant,” which currently operates nearly 300 locations nationwide, comes after years of the company struggling to remain profitable while grappling with inflation.
Learn more about the all-new VT News and subscribe today!
First reported by Bloomberg News, the company is working with law firm Ropes & Gray to assist in the restructuring process and finalize the bankruptcy filings, which could arrive within the next two months.
Several factors have contributed to Hooters’ financial difficulties, including rising operational costs, shifting consumer preferences, and increased competition in the casual dining sector.
While Hooters once cornered the market on scantily-clad dining experiences, rivals like Twin Peaks, Tilted Kilt, and others have successfully copied the company’s format, sending profits plunging to match the waitstaff’s necklines.
In recent months, the chain has closed around 40 underperforming locations in an effort to cut costs and address its financial woes.
In 2021, Hooters sold off about $300 million in asset-backed bonds, using franchise fees and other assets as collateral.
Connor Walcott is the lead writer for Valuetainment.com. Follow Connor on X and look for him on VT’s “The Unusual Suspects.”
Got a hot scoop or an idea for a story? Connect with the VT writers on Minnect!
Add comment