BIG BUST
Hooters set to file for bankruptcy as diners reveals rival has ‘steadily been stealing’ customers for years
Plans for a restructuring are already underway
A BANKRUPTCY filing could be imminent for Hooters of America.
The popular restaurant chain is reportedly working on a plan to restructure its operations alongside creditors.
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Court proceedings could start as soon as April, according to what sources close to the matter told on Friday.
Hooters and law firm Ropes & Gray are preparing the filing in February, but final plans are not yet definitive, per the sources.
Hooters is addressing a considerable debt it accrued over the years alongside lawyers.
In 2021, it sold about $300 million worth of asset-backed bonds.
Hooters did not immediately respond to a request for comment.
The U.S. Sun has also contacted Ropes & Gray for more information.
CLOSING TIME
The restaurant chain has also faced a steady decline in foot traffic and had several closures in the last year alone.
Some customers have that rival chains like Twin Peaks with a similar format have been "steadily stealing" customers for some time.
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In June 2024, Hooters conducted a wave of shutdowns nationwide for "underperforming" restaurants.
A couple of others had already locked their doors just days before the closure announcement from the company.
Restaurant chain with 475 outlets set to close dozens of locations across the US – as CEO issues ominous warning
Some were also spotted with closure notices from the month prior in May.
At the end of the year, at least 44 had been shuttered in 14 states.
Texas lost the most Hooters locations with 16 shuttered.
Hooters cited "pressure from current market conditions" as a significant reason behind the abrupt removal of the restaurants while speaking with The U.S. Sun at the time.
2024 Hooters Closures
Alabama
- Hooters, Huntsville, 4729 NW University
- Hooters, Birmingham, 1278 Oak Grove Rd
Florida
- Hooters, Gainesville, 3105 SW 34th St
- Hooters, Lakeland, 3437 South Florida Ave
- Hooters, Orange Park, 1740 Wells Road
- Hooters, West Palm Beach, 2020 Palm Beach Lakes Blvd
Kentucky
- Hooters, Louisville, 4948 Dixie Highway
- Hooters, Richmond, 241 Eastern Bypass
Georgia
- Hooters, Brunswick, 10355 Canal Crossing
- Hooters, Hiram, 5464 Wendy Bagwell Pkwy
- Hooters, Macon, 112 Riverside Parkway
- Hoots Wings by Hooters, Atlanta, 935 Memorial Drive NE, Suite 310
- Hooters, McDonough, 1858 Jonesboro Road
Illinois
- Hooters, Springfield, 3241 Horizon Drive
Indiana
- Hooters, Castleton, 6426 E. 82nd St
- Hooters, Clarksville, 941 Lewis & Clark Pkwy
Maryland
- Hooters, Baltimore, 301 Light St 1445
Missouri
- Hooters, Florissant, 2765 N. Highway 67
- Hooters, Independence, 19850 E. Valley View Pkwy
- Hooters, North Kansas City, 6411 Barry Rd
North Carolina
- Hooters, Greenville, 316 S.W. Greenville Blvd
- Hooters, Jacksonville, 463 Western Blvd
- Hooters, Charlotte, 123 W. Trade Street
Oklahoma
- Hooters, Oklahoma City, 13320 N Pennsylvania Ave
South Carolina
- Hooters, Columbia, 7711 Two Notch Road
Tennessee
- Hooters, Memphis, 7535 Winchester Road
Texas
- Hooters, Beaumont, 850 Interstate 10
- Hooters, Laredo, 5706 San Bernardo Avenue
- Hooters, Houston, 2519 Southwest Parkway
- Hooters, Baytown, 4710 I-10 East
- Hooters, Arlington, 5821 West I-20
- Hooters, Wichita Falls, 3701 Call Field Road
- Hooters, Lewisville, 1960 S. Stemmons
- Hooters, San Antonio, 849 E. Commerce St., Ste. 105
- Hooters, Bryan, 960 N. Earl Rudder Fwy
- Hooters, Lubbock, 4950 S. Loop 289
- Hooters, Galveston, 6028 Heards Lane
- Hooters, Waco, 3921 S. Jack Kultgen Freeway
- Hooters, Fort Worth Downtown, 150 Throckmorton, Suite 132
- Hooters, McAllen, 410 E. Expressway 83
- Hooters, San Angelo, 4384 Sherwood Way
- Hooters, Seabrook, 1818 NASA Road 1
- Hooters, Wichita Falls, 3701 Call Field Rd
Virginia
- Hooters, Manassas, 8503 Rixlew Drive
The total number of Hooters locations has decreased by at least 12% since 2018, per data from consulting firm Technomic.
As of this year, there are at least 420 the United States.
BANKRUPTCY WOES
Hooters isn't alone in its struggles, either, as several branded restaurants have filed for bankruptcy or initiated mass closures recently.
Red Lobster is getting back on its feet after exiting bankruptcy proceedings in September.
It filed for bankruptcy in May of last year and shut down over 100 locations before restructuring and gaining a new investor.
TGI Fridays also submitted its Chapter 11 filing in November.
The company's executive chairman, Rohit Manocha, said the coronavirus pandemic was a "primary driver" of the brand's financial struggles, per court documents.
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Fast-casual burger chain Burger-Fi also closed several locations and filed for bankruptcy in September.
A similar process was conducted by Mary's Pizza Shack, a 65-year-old brand with 10 restaurants.
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