Economics

Summary

Hooters filed for Chapter 11 bankruptcy in Texas, planning to sell its 100 company-owned restaurants to two major franchisee groups from Tampa and Chicago.

These groups already run a third of Hooters' U.S. franchises. The company blamed closures on rising food and labor costs and faces lawsuits over discrimination.

It expects to exit bankruptcy within 90–120 days. Private equity owners Nord Bay Capital and TriArtisan bought Hooters in 2019.

The buyer group includes original founders aiming to make the brand more family-friendly.