Hooters of America is reportedly gearing up for a bankruptcy filing in the coming months as the iconic restaurant chain struggles with declining foot traffic and mounting debt, sources familiar with the matter told Bloomberg.
The Atlanta-based casual dining chain has enlisted the legal muscle of Ropes & Gray to handle its restructuring, while turnaround specialists at boutique advisory firm Accordion Partners are helping sort out the financial mess, according to sources who requested anonymity while discussing private dealings. The bankruptcy process is expected to kick off within the next two months.
Hooters’ creditors aren’t sitting idly by either. Some debtholders have tapped investment banking powerhouse Houlihan Lokey Inc. for advice, underscoring the severity of the chain’s financial troubles.
Declining Sales and Mounting Debt The company has been struggling with cash flow issues as customers increasingly flock to other casual dining and fast-casual options. In recent years, several Hooters locations have closed their doors, a clear sign that the once-popular brand known for its wings and waitstaff is facing an existential crisis.
Adding to the financial woes, Hooters took on significant debt in 2021, issuing about $300 million in asset-backed bonds. These bonds, structured as whole-business securitizations, used the company’s franchise fees and other assets as collateral—a move common among restaurant chains looking to leverage their brand value for quick cash.
Executives Stay Silent
Despite the growing speculation, representatives for Hooters, Accordion Partners, and Ropes & Gray did not respond to requests for comment. A spokesperson for Houlihan Lokey also declined to weigh in on the situation.
The looming bankruptcy marks a dramatic downturn for a brand that once dominated the sports bar scene with its signature wings and controversial-but-effective marketing. With an increasingly competitive restaurant landscape and shifting consumer preferences, Hooters now faces the challenge of reinventing itself—or risk being left in the dust.
For now, it looks like the chain’s famous orange shorts and tight cash flow may both be on the chopping block.
How could this have possibly happened? . .
Trannys and Fat blacks. No thanks. I'd barf. Besides the hot White girls are making way too much money on Only Fans. They aint shoveling your beer and wings no more.
The last time I went to Hooters, my wife and her friend took out me and the husband of that friend. Our waitress was FAT. Did they think people go there for the great food?
I had a friend named Matt. He would go to Hooter's 5-6 days a week. For him, it was an outlet to hit on young girls, even when he was married. Through him though, I ended up going often because that is where he wanted to hang out. First thing first, they need to update the fucking menu. They've had the same boring shit for at least 10 years. Whenever they do get one new menu item, they cancel it several months later.
I will admit that the one closest to where I live has largely been able to keep their staff "female" and not obese. But most of them also do not have large hooters.
The weirdest fucking thing is that the fucking spics here treat Hooter's like a family dining establishment. No joke, there are constantly whole beaner families, with the wife and kids in tow. It's just fucking weird to me. Take your fucking anchor babies to a proper restaurant!
No, it's "Go broke, Get woke, then ultimately croak". We were seeing the end of the pipeline, but what we weren't seeing was the part where they had financial troubles and decided to go woke to drum up sales (or after taking a BlackRock/Vanguard loan with ESG stipulations).
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