The renowned restaurant chain, Hooters, has sought bankruptcy protection due to its struggle with $376 million in debt.
Hooters operates 151 restaurants directly, along with 154 more run by franchisees throughout the United States. The chain is known for its offerings of chicken wings, burgers, and seafood.
Despite the financial challenges, Hooters’ CEO Sal Melilli is optimistic about the future, affirming that the eateries ‘are here to stay’ as they adapt their business strategy.
In a press release shared on March 31, Melilli stated, “Today’s announcement marks an important milestone in our efforts to reinforce Hooters’ financial foundation and continue delivering the guest-obsessed hospitality experience and delicious food our customers and communities have come to expect.”
Over the upcoming months, Hooters plans to transfer ownership of more than 100 company-operated locations to two franchisees who intend to enhance the brand’s appeal to families.
Melilli remarked, “I’ve seen firsthand the incredible value and opportunities our brand brings to life, and I look forward to continuing that momentum well into the future.”
“I’m incredibly grateful to our valued customers, partners, and employees for their continued support,” he added.
While this transition occurs, Hooters will keep its doors open to customers, and its international locations will remain unaffected.
The restructuring process is expected to be finalized within the year, with a goal to emerge from Chapter 11 bankruptcy in ’90-120 days’.
Chapter 11 bankruptcy allows companies to reorganize their debts while continuing operations.
In the previous year, a Hooters spokesperson explained to the Daily Mail: “Like many restaurants under pressure from current market conditions, Hooters has made the difficult decision to close a select number of underperforming stores.
“We look forward to continuing to serve our guests at home, on the go, and at our restaurants here in the US and around the globe.”
Commenting on the development, Neil Kiefer, CEO of Hooters Inc., representing the Buyer Group, said: “With over 30 years of hands-on experience across the Hooters ecosystem, we have a profound understanding of our customers and what it takes to not only meet, but consistently exceed their expectations.”
“As we look toward the future, we are committed to restoring the Hooters brand back to its roots and simplifying HOA’s operations by adopting a pure franchise model that will maximize the potential for sustainable, long-term growth,” he continued.
“The foundation we’ve laid ensures the continued success of our brand – one that is driven by a relentless focus on delivering an exceptional experience each and every visit for our customers.”