Hooters Files for Bankruptcy Amid Financial Struggles and Change

• Apr 01, 2025

Hooters, the well-known restaurant chain famous for its wings and unique brand image, has filed for bankruptcy due to rising operational costs and shifting consumer spending habits. The company, which owns 151 locations and franchises another 154, assured customers that all restaurants will remain open and continue normal operations during the restructuring process.

Sal Melilli, CEO of Hooters of America, described the bankruptcy filing as a critical step to stabilize the company’s finances. "Today’s announcement marks an important milestone in our efforts to reinforce Hooters’ financial foundation," Melilli said.

As part of the financial recovery plan, Hooters intends to sell all its corporate-owned restaurants to a group of two existing franchisees. This group, which already operates 14 of Hooters' most successful locations in cities like Tampa, Florida, and Chicago, Illinois, also includes some of the company’s original founders. Their goal is to return Hooters to its roots while making the brand more family-friendly.

Although the value of the deal has not been disclosed, it is still awaiting approval from a U.S. bankruptcy judge. The company anticipates the restructuring process will be completed within four months.

Founded in 1983, Hooters grew popular for its casual dining experience and American bar food, alongside its signature “Hooters Girls” who serve customers in distinctive outfits. Over the years, the chain expanded rapidly, but like many casual dining businesses, it has struggled with increasing wages, higher operational costs, and shifts in consumer behavior.

The restaurant industry has seen major changes recently, with rising competition from fast-casual restaurants, food delivery services, and evolving customer preferences. Hooters’ financial troubles are reflective of the broader challenges faced by many traditional dining brands in today’s competitive market.

Despite these struggles, Hooters remains committed to its brand and loyal customers. With new ownership bringing a fresh vision, the company hopes to maintain its legacy while evolving to attract a new generation of diners. The coming months will determine if the restructuring process can successfully revive the once-iconic restaurant chain.