Iconic restaurant chain Hooters aims to rebuild as it files for bankruptcy

The restaurant chain Hooters announced this week that it is filing for Chapter 11 bankruptcy as the company plans to sell all of its restaurants.

As part of the announcement, Hooters will sell its company-owned restaurants to two franchisees who collectively own and operate over 30% of the domestic franchised Hooters locations, including 14 of the 30 highest-volume restaurants.

Hooters expects to restructure its debt within 90 to 120 days. Among the franchisees purchasing the restaurants is the original owner of Hooters, who currently owns 22 locations primarily in the Tampa and Chicago areas.

RELATED STORY | Why do longtime restaurant chains keep shuttering locations?

The company does not intend to close any locations amid the bankruptcy.

“Our renowned Hooters restaurants are here to stay. 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 that our customers and communities have come to expect,” said Sal Melilli, CEO of Hooters of America. “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.”

Hooters currently has 151 company-owned locations and 154 franchised locations worldwide.

The company states that it intends to use the proceeds from the sale of the restaurants to help pay down nearly $376 million in debt.