Hooters of America announced on Monday that it has filed for bankruptcy protection in Texas. The move is intended to address the company's significant debt burden, which currently stands at $376 million. The restaurant chain plans to sell all of its company-owned locations to a franchise group. This franchise group has the backing of the founders of Hooters.
Chapter 11 bankruptcy allows a company to reorganize its finances while continuing to operate. Hooters intends to use this process to restructure its debt and ensure the long-term viability of the business. The proposed sale to the founder-backed franchise group is a key part of this strategy. The deal would transfer ownership of the company-owned restaurants, potentially streamlining operations and reducing debt.
The future of the Hooters brand remains uncertain, but company officials express optimism that this restructuring will allow them to continue serving customers and providing employment opportunities. The bankruptcy filing and proposed sale are subject to court approval.
Hooters Files for Bankruptcy, Plans Founder-Led Buyout
Hooters of America, the restaurant chain known for its wings and waitresses, has filed for Chapter 11 bankruptcy. The company is seeking to restructure its $376 million debt. As part of the plan, Hooters aims to sell all of its company-owned restaurants to a franchise group. This group is supported by the original founders of the Hooters restaurant chain.
Source: Read the original article at NBC