Hooters restaurant chain plans restructuring, risking bankruptcy

Hooters of America is preparing to file for bankruptcy in the coming months, according to a report reported by Bloomberg.

A report from the business outlet claims the company is working with law firm Ropes & Gray to file for bankruptcy. It is also working with restructuring consultants Accordion Partners. Some creditors have sought advice from Houlihan Lokey.

The chain faces significant financial problems. Its debt amounts to approximately $300 million. In 2024, it closed several unprofitable branches. As an attempt to save its accounts, it launched a frozen food line to diversify revenues.

The brand is known for its casual-style restaurants, often criticized by some groups. In the establishments, the staff is female and mostly very attractive, this being one of the brand's main marketing values.

According to Bloomberg, customer traffic has declined. Factors such as changes in consumer preferences and the rise of competitors such as Twin Peaks have affected its business. The company has not officially confirmed bankruptcy, but the process could begin within two months.

Hooters' situation reflects a crisis in the casual dining industry. Other chains such as Red Lobster and TGI Friday's have had similar financial difficulties. Many have resorted to bankruptcies or location closures.

For now, there are no details on the impact on employees or franchisees. It is expected that the company will attempt to restructure its debt and continue operating.