Hooters Could Be Preparing Bankruptcy Filing After Closing Several Restaurants

Fans of the iconic Hooters restaurant chain may be disappointed by news that the company is allegedly navigating a potential bankruptcy filing, according to Bloomberg. Those familiar with the proceedings claim that the chain is working with law firm Ropes & Gray to prepare a bankruptcy filing to be worked through the courts in the coming months, although sources indicated a desire for anonymity over the sensitive nature of the plan.

Hooters had previously been working on a turnaround plan — in conjunction with advisers at Accordion Partners — in addition to seeking counsel as to how to handle its debt load. Foot traffic had slowed across the brand nationwide, and as The New York Post reported, it closed approximately 40 locations in 2024 in response. The restaurant chain currently operates about 300 locations in the U.S.

Bloomberg indicated that Hooters has been facing headwinds for some time, selling $300 million in asset-backed bonds in 2021. Those bonds placed assets, including the brand’s franchise fees, up as collateral.

All three interested parties — Hooters, Accordion Partners, and Ropes & Gray — declined to comment.

Celebrities Dismayed by Potential Hooters Closure, Including NBA Star

The New York Post reported that Phoenix Suns guard Devin Booker was only one of several celebrities commenting on the restaurant chain’s potential bankruptcy filing, with Booker taking to X to write: “Plz don’t go Hooters.”

Golf star John Daly as well as his son, John Daly II, may also be affected by the ill fortunes besetting Hooters, as both father and son had inked partnership deals to represent the brand in recent years, as Motociclismo noted.

Golf fans — and social media trend followers — also took note of golf coach and influencer Paige Spiranac’s apparent displeasure over the news. Spiranac took to X on Feb. 21 to write “Not on my watch,” in response to the headlines concerning Hooters’ financial woes.

Not everyone was surprised by the reveal, however. The U.S. Sun noted that several social media users chimed in to criticize issues plaguing the restaurant chain recently, including concerns over food quality, the company’s supply chain and order processes, and cleanliness.