Hooters On The Verge of FIling For Chapter 11 Bankruptcy

Source: Grant Lamos IV / Getty / Hooters

Welp, it looks like your going to have to get your fill of beer, boobs, and wings elsewhere pretty soon because it might be a wrap for your local Hooters establishment. According to Bloomberg News, the restaurant franchise best known for dressing its servers in skimpy orange shorts and tiny tops that give patrons beer, wings, and a side of boobs is on the verge of going belly-up.

According to the website, the casual dining chain has engaged in talks with law firm Ropes & Gray to begin the bankruptcy process, sources familiar with the matter told Bloomberg News. No final decision has been made regarding seeking Chapter 11 protection, but according to sources, it could all happen within the next two months. Hooters’ financial problems aren’t new; they have been going on for some time, with the company actively seeking a way to become profitable again. Per The New York Post:

Hooters — which has about 300 locations nationwide — has faced increasing financial strain as traffic declines at its kitschy restaurants, leading to the closure of several outposts.

The Atlanta-based company has been working alongside turnaround consultants from Accordion Partners to address its financial difficulties, particularly its debt burden.

Several of its creditors have also sought guidance from investment bank Houlihan Lokey, Bloomberg reported.

The Post has sought comment from Hooters, Accordion Partners, Ropes & Gray and Houlihan Lokey.

The company had previously raised approximately $300 million through asset-backed bonds in 2021, a financing structure that allows businesses to use franchise fees and other assets as collateral.

This form of structured debt, known as whole-business securitization, is commonly used by restaurant chains, fitness centers and other franchise-heavy enterprises.

X Reacts To Hooters Possibly Being Shuttered

Social media, of course, has thoughts on the possibility of Hooters going away for good. “How bad is the economy when strippers are complaining about empty clubs & low/no tips, and Hooters is filing for bankruptcy? This is all the proof you need something needs to change,” one user wrote on X, formerly Twitter, which honestly puts some much needed perspective on the current state of things. Another user celebrated the chain’s apparent downfall and pointed out racism she experienced as an employee writing on X, “good, when i was 20 y/o i quit hooters because corporate emailed our manager and said it was too many black girls working there.” Welp.

Hooters is not the only restaurant chain experiencing hard times lately. TGI Fridays had to cede control of some assets due to failing to fulfill debt obligations, and everyone’s favorite seafood restaurant, Red Lobster, also filed for bankruptcy in May. Flavor Flav did his part to prevent Red Lobster from further sinking into the bankruptcy abyss by becoming a pitchman and purchasing the entire menu. We don’t think Hooters will have the same luck, but who knows, maybe somebody loves seeing boobies and eating wings as much as Flavor Flav loved cheddar bay biscuits. More reactions to Hooters mulling Chapter 11 bankruptcy are in the gallery below.