He became famous for his service staff uniforms – low-cut tank tops and orange shorts – and Hooters later filed for bankruptcy, the company announced.
The restaurant chain, reported by Reuters, reported that it had filed an application in a Texas court on Monday. The plan is to deal with $376 million in debt by selling all the company-owned locations to the company’s original founders and stacked franchise groups.
Joining Red Lobster, TGI Friday and other casual dining restaurants ranks, chain officials are increasingly aware of increased food and labor costs and a reduction in general decline in American spending.
The Hooters Girls Line announces the epic reopening of the Hooters in Houston on January 23, 2013. (Photo by Brett Coomer/Houston Chronicle via Getty Images)
There were also expensive lawsuits for gender and racism, CNN reported.
In June 2024, the restaurant chain announced it would close dozens of inadequate Hooters locations in a move that was likely to foreseen future bankruptcy filings.
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In a statement, Hooters said it expects to move the bankruptcy process within the next 90-120 days, but company officials have made it clear to the fan base that the restaurant chain won’t go anywhere.
“Our famous Hooters restaurant is staying here,” said Sal Mellilli, CEO of Hooters of America. “Today’s announcement marks an important milestone in our efforts to strengthen Hooter’s financial foundation and continue to continue to expect guests’ hospitality experiences and delicious food.”
The company has secured around $35 million in funding from its current lenders, helping it survive bankruptcy proceedings, Reuters reported.
Founded in 1983, the company itself owns 154 locations and has another 151 locations run by the franchisee. According to its website, there are seven locations in California.
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