The iconic restaurant chain Hooters, famous for its chicken wings and all-female serving staff in revealing attire, has announced filing for bankruptcy in a Texas court. The company, known for its slogan “delightfully tacky, yet unrefined,” outlined that under the proposed bankruptcy agreement, a group including the company’s founders—who operate about a third of the franchised locations in the U.S.—will acquire the company-owned restaurants from the private equity firm currently in possession of the chain.

This complex bankruptcy procedure is designed to keep many of Hooters’ restaurants operational. In its announcement, the company emphasized that its renowned Hooters restaurants are here to stay, with operations continuing during the bankruptcy proceedings as they assured on the site dedicated to explaining the transaction.

With over 400 locations across 42 states and 29 countries, some of these, including international franchises, will not be affected by the bankruptcy process, Hooters stated. After the bankruptcy process is completed, all of the chain’s locations will transition to franchises.

Reports of Hooters potentially filing for bankruptcy had been circulating for weeks, first spotted by Bloomberg News. Last summer, Hooters shut down several of its restaurants. Recently, Neil Kiefer, the CEO of an independent company overseeing a group of original Hooters restaurants, revealed plans for a “re-Hooterization,” or a rebrand, which includes discontinuing “bikini nights.” Mr. Kiefer, who is one of the proposed buyers of Hooters locations, stated in a statement that they are committed to returning the Hooters brand to its roots.

The proposed rebrand aims to give Hooters a more wholesome image, especially after backlash in 2021 over uniform changes that included shorts resembling underwear. The company quickly reverted the policy to allow staff members a choice of shorts to wear.

Hooters is not alone in facing challenges; other famous dining chains have also struggled in recent years, partially due to the impact of pandemic closures and inflation affecting consumer budgets. In November, TGI Fridays filed for bankruptcy protection, and last May, Red Lobster, the American seafood staple, did the same.

Founded 42 years ago by six men with no previous restaurant experience, Hooters first opened its doors in Clearwater, Fla., in October 1983. The chain’s distinctive wide-eyed owl logo and orange lettering became symbols of the brand in popular culture.

Source: https://www.nytimes.com/2025/04/01/business/hooters-restaurant-bankruptcy.html