Hooters Has Officially Filed For Bankruptcy. Here’s What Happened.

Hooters has announced that it has officially filed for bankruptcy, marking the end of an era for Gen Xers and elder millennials who saw a trip to the sports bar as a rite of passage of sorts. But what will now happen to the remaining locations? Let’s look at what we know.

Hooters Filed for Bankruptcy Protection — But It Isn’t Going Anywhere

According to CNN, Hooters officially filed for Chapter 11 bankruptcy protection on Mar. 31. A company spokesperson claimed that the company would exit Chapter 11 “within 90 to 120 days” after the filing.

During the bankruptcy process, the parent holding company says it intends to sell all its 100 company-owned restaurants to two franchisee groups holding Hooters sites in Tampa and Chicago. The united group owns and operates one-third of all franchised stores in the United States.

The company’s workers have also come under scrutiny, with lawsuits alleging racial and gender discrimination. Last year, Hooters closed dozens of restaurants, citing rising food and labor costs.

The sports bar also stated that it will continue to do business as usual but is “evaluating the Company’s operational footprint” for its company-owned restaurants. That implies it may have to close certain locations throughout the bankruptcy process. In 2019, private equity firms Nord Bay Capital and TriArtisan Capital Advisors purchased the brand.

“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,” said CEO Sal Melilli in a statement accompanying the press release announcement of the bankruptcy.

“For many years now, the Hooters brand has been owned by private equity firms and other groups with no history or experience with the Hooters brand,” said Neil Kiefer, one of the original founders of the company, in a statement accompanying a press release on Mar. 31, per CNN.

The Threat of Bankruptcy Was Looming

Indeed, Kiefer’s statement appears to have a ring of truth. The threat of bankruptcy had been looming for quite some time, with the first rumors of the impending filing surfacing in February 2025.

The company is working with legal firm Ropes & Gray in its bankruptcy proceedings. Hooters had previously been working on a turnaround strategy with advisers from Accordion Partners and seeking advice on how to deal with its debt load. Foot traffic had fallen across the brand’s entire network. The restaurant franchise now runs over 300 locations in the United States.

According to Bloomberg, Hooters has been battling challenges for some time and plans to sell $300 million in asset-backed bonds in 2021. Those bonds pledged assets, including the brand’s franchise fees, as collateral.

Furthermore, according to the New York Post, Phoenix Suns guard Devin Booker was among several celebrities who commented on the restaurant chain’s impending bankruptcy filing, with Booker writing on X, “Plz don’t go Hooters.”

Golfer John Daly and his son, John Daly II, may also be affected by Hooters’ financial woes, as both father and son signed cooperation deals to represent the brand in recent years, according to Motociclismo.

Golf enthusiasts and social media trend monitors took note of golf coach and influencer Paige Spiranac’s evident unhappiness with the news. On Feb. 21, Spiranac took to X to write “Not on my watch,” in reaction to reports about Hooters’ financial troubles.

However, the reveal did not surprise everyone. The U.S. Sun said that several social media users recently stepped in to criticize the restaurant chain, including worries about food quality, the company’s supply chain and order processes, and hygiene.