Hooters Shuts Down Over 30 Locations in Multiple States Amid Bankruptcy Restructuring

Hooters has made the difficult decision to close more than 30 of its restaurants across several states this week. This move comes as the iconic restaurant chain navigates a complex bankruptcy restructuring process.

The closures primarily involve corporately owned locations operated by Hooters of America, based in Atlanta. Reports indicate that restaurants in at least ten states, including major markets like Florida and Texas, have been impacted.

Statement from Hooters

In a recent statement to USA Today, Hooters expressed optimism about the future of its brand. The company stated, ‘Hooters will be well-positioned to continue our iconic legacy under a pure franchise business model.’ This shift signals a strategic pivot towards franchising, which Hooters believes will strengthen its operational framework.

Support for Team Members and Customers

Alongside its restructuring efforts, Hooters has emphasized its commitment to supporting team members affected by these closures. ‘We are committed to supporting our impacted team members throughout this process and are incredibly grateful to our valued customers for their loyalty and dedication to the Hooters brand,’ the statement continued.

Details on Bankruptcy Filing

Hooters of America recently filed for Chapter 11 bankruptcy, a necessary step to facilitate a founder-led buyout and reorganization of the popular dining chain. This move is part of a broader strategy to streamline operations and enhance profitability.

Neil Kiefer, CEO of Hooters Inc., which is based in Clearwater, Florida, mentioned earlier this year that the company plans to ‘clean these stores up’ and ‘change the culture.’ The intent is clear: closing underperforming locations will pave the way for revitalization.

Future Plans and Expansion

Hooters Inc. currently operates 22 locations in Florida and Illinois, with plans to open two more restaurants in Florida later this year. This expansion showcases the company’s resilience amid challenges while focusing on high-performing franchises.

Currently, the buyer group involved in the acquisition process maintains control over more than 30% of the chain’s domestic locations. These select restaurants include 14 of the 30 highest-volume Hooters establishments, demonstrating the group’s commitment to maintaining a strong market presence.

Looking Ahead for Hooters

Once the restructuring plan is approved by the bankruptcy court, the buyer group expects to streamline operations by managing approximately 130 Hooters locations. This represents around 65% of the remaining domestic Hooters restaurants, highlighting a significant reduction in corporate holdings.

In statements made to Fox News Digital, Kiefer expressed confidence in the acquisition process. ‘We are confident that the acquisition will be finalized later this summer, and we are excited to move forward into the next chapter of the Hooters brand,’ he remarked.

Final Thoughts on Closure Decisions

Making decisions about closing restaurants is undoubtedly challenging. Kiefer noted, ‘Decisions about store closures are never easy to make, but all parties are completely aligned in bringing the necessary resources to make the remaining 200 domestic Hooters locations as successful as possible.’

As Hooters navigates this restructuring phase, the company’s dedication to revitalizing its brand and supporting its employees remains at the forefront of its mission. The coming months will be crucial as Hooters works to define its future and adapt to changing market conditions.