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Hugely popular themed restaurant chain on brink of bankruptcy – sparking fears of mass closures
By DANIEL JONES, CONSUMER EDITOR FOR DAILYMAIL.COM
PUBLISHED: 15:23 GMT, 21 February 2025 | UPDATED: 17:40 GMT, 21 February 2025
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Hooters – known for its scantily-clad waitresses – is preparing to file for bankruptcy, becoming the latest American restaurant chain facing financial problems.
The US arm of the chain is preparing to restructure through Chapter 11 in the coming months, sources familiar with the matter told Bloomberg News this morning.
Hooters has enlisted law firm Ropes & Gray to assist with the filing, expected within two months, the sources said.
Like other struggling chains such as Red Lobster – which filed for bankruptcy in the summer – Hooters is blaming the rising cost of rent and food and customers eating out less.
In the fall it emerged that bosses at the 42-year-old chain were in urgent talks with lenders and advisers as the popular chain tried to address $300 million of debts.
Hooters shuttered around 40 ‘underperforming’ restaurants in June, including locations Florida, Kentucky, Rhode Island, Texas and Virginia as it bid to cut costs. A bankruptcy would likely lead to more closures of the 300 remaining locations.
And only this week the chain shuttered one of its family-friendly Hoots Wings by Hooters spin-off restaurants, leaving just three. The concept launched in 2017 in Chicago sees diners order at a counter rather than at their tables.
But Hoot Wings’ biggest difference is its staff – both male and female servers wear regular, non-revealing outfits at the counter-service restaurant.
The chain is known for its scantily-clad waitresses
Hooters has recently shut around 40 restaurants
Golf influencer Paige Spiranac joked on X: ‘Not on my watch’ – when commenting on news that Hooters was readying to file for bankruptcy
After news of Hooters problems this morning, golf influencer Paige Spiranac joked on X: ‘Not on my watch’ – implying she would step in to help save the brand.
Hooters, owned by private equity since 2019, has about $300million in bonds that need to be repaid, according to data compiled by Bloomberg.
These bonds are backed – a bit like mortgages – to the assets it owns, such as its property, brand rights and fees it gets from its franchisees. That means lenders can put pressure on it to sell them if debts are not repaid.
Chapter 11 bankruptcy allows companies to restructure – by negotiating leases with landlords and loans with banks.
Red Lobster recently emerged from Chapter 11 after using it to close 100 restaurants and clear debts.
Hooters now has about 300 restaurants globally after the closures this year. That is down from 333 in 2018, according to Techonomic.
Rivals Dave & Buster’s, Miller’s Ale House and Twin Peaks have all slightly upped their restaurant count.
At the time of the closures in the summer, Hooters was not thought to be in as dire financial situation as Red Lobster, which has now emerged from Chapter 11 bankruptcy.
In fact, bosses said Hooters ‘remains highly resilient and relevant,’ and highlighted a new range of Hooters frozen food which is being sold in supermarkets across America.
The first Hooters opened in Clearwater, Florida in 1983
The sports bar-style restaurant is well known for its wings and its scantily clad waitresses, ‘Hooters Girls’
Hooters,opened six new locations in 2023. Three in Las Vegas, and three in Florida, where the brand originated
Marie recommended others apply to the chain while showing off her cash
‘Like many restaurants under pressure from current market conditions, Hooters has made the difficult decision to close a select number of underperforming stores,’ a spokesperson told DailyMail.com.
‘We look forward to continuing to serve our guests at home, on the go and at our restaurants here in the US and around the globe.’
DailyMail.com has reached out to Hooters again today.
Hooters, as well as being known for scantily clad waitresses, also calls itself ‘the original American wing joint’, and celebrated its 40th birthday in 2023.
The first Hooters opened in Clearwater, Florida in 1983. Only last May, it was opening restaurants – three in Las Vegas and three in Florida.
Waitresses can make big bucks. Maia Marie, a 23-year-old waitress, shocked her 25,000 social media fans with the more than $450 she raked in on just one half shift at the chain.
‘I ended up walking out of there with $451,’ Marie said in a viral TikTok video last year that was viewed 3.8 million times. So, over a full shift it would likely be double that.
Across America, restaurants have increasingly been struggling over the past year.
Faced with higher costs, they have put up menu prices – but that has led to a fall in customers.
Big name chains like Applebee’s, TGI Fridays and Boston Market have have all recently shuttered restaurants.
BurgerFi is the latest for file for bankruptcy in September – sparking sparks fears of mass closures of its 162 locations.
Chains have been worst hit in California where the minimum wage for fast food restaurants jumped to $20-an-hour from April 1.
In early June, Mexican chain Rubio’s shut 48 locations in the state and also filed for bankruptcy.
Across America, mom-and-pop operations have also been shutting.
For example, Fargo’s Pit BBQ in Texas closed after more than two decades of serving brisket, ribs and other barbecue classics.
Published by Associated Newspapers Ltd
Part of the Daily Mail, The Mail on Sunday & Metro Media Group
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Paige Spiranac Offers To Help Save Hooters As It Faces Bankruptcy
Guys, I hate to break this news to you: Hooters is on the brink of bankruptcy.
With fewer Gen Z men going out to watch sports and suck down draft beers compared to prior generations, and with competition from Twin Peaks and other breastaraunts trying to steal its business, Hooters is in a tough economic spot.
Bloomberg reported Friday that Hooters of America, which is based in Atlanta and owned by private equity firm Nord Bay Capital, “is working with creditors on a plan to restructure the business through bankruptcy court in the coming months.”
In 2024, Hooters announced it was closing at least 40 underperforming stores.
“With new Hooters restaurants opening domestically and internationally, new Hooters frozen products launching at grocery stores, and the Hooters footprint expanding into new markets with both company and franchise locations, this brand of 41 years remains highly resilient and relevant,” the restaurant told Nation’s Restaurant News at the time. “We look forward to continuing to serve our guests at home, on the go and at our restaurants here in the U.S. and around the globe.”
Now here we are with the latest news and the realization we could be looking at a dramatically different business after it goes through bankruptcy.
Could this be the end of the Hooters Girls? Would a bankruptcy judge order the company to sell off the Hoots unis like they’re liquidating XFL jerseys?
You’re damn right I’m having a hard time thinking about this iconic brand possibly losing its very existence.
In 2023, Gen X financial analyst Meridith Whitney, who has been dubbed the “Oracle of Wall Street,” went on CNBC and unloaded on young men and their lack of interest in getting laid.
“It’s all young men and I dovetailed that with Pew Research which says that 63% of young men are single,” Whitney explained. “And that’s the highest it’s ever been. And 50% of those young men have no interest in dating, not even casually.”
She wasn’t done.
“30% of young men said they haven’t had sex in over a year and don’t seem to care.”
You’re damn right these Gen Zs aren’t going to Hooters to enjoy the flirtatious atmosphere and good times.
What are they doing instead?
Dicking around on their phones and playing video games.
“You have the lowest household formation growth rate in over 60 years. And so you have young men who don’t want to date and young women who are spending their time with Instagram moments going to Taylor Swift concerts. So they’re not getting married,” Whitney continued.
Hooters pays the price due to this cultural shift. Instead of going to Hoots on a Thursday night for the 4 Nations hockey game or a football game, men are sitting at home stoned on gummies and gambling on their phones while some DoorDash driver drops off McDonald’s.
And now here we are with tragic American pop culture news.
Can Paige Spiranac save the day? Good luck. She’s dealing with men who’ve been told their entire lives that they have to be soy boys and can’t possibly head out to suck down wings and beers at a classic breastaurant.
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