Hooters, the iconic American restaurant chain known for its signature chicken wings and the distinctive uniforms of its “Hooters Girls,” has filed for bankruptcy protection. The company, operated by HOA Restaurant Group, officially submitted its Chapter 11 bankruptcy filing on Monday in the North Texas Bankruptcy Court in Dallas.
The filing comes as the chain struggles with mounting debt. However, Hooters has reassured customers that it intends to stay open while working through financial challenges in the coming months. In an effort to stabilize the business, a group of the company’s original founders—who already own nearly a third of the chain’s U.S. locations, including some of its most profitable restaurants—plan to acquire additional outlets.
“Our renowned Hooters restaurants are here to stay, and we are taking action to strengthen our business to better serve our valued customers over the long term,” the company stated in a notice posted on its website.
Founded in Clearwater, Florida, in 1983, Hooters has long been a recognizable brand. However, financial difficulties have been mounting for years. In 2019, the Hooters Hotel and Casino in Las Vegas was sold and rebranded as the OYO Hotel and Casino. More recently, the company struggled to maintain sponsorship commitments, resulting in the termination of its deal with NASCAR driver Chase Elliott in 2023.
Beyond financial setbacks, Hooters has also faced legal and cultural challenges. A lawsuit from the U.S. Equal Employment Opportunity Commission led to a $250,000 settlement over race and color discrimination allegations at a North Carolina location. Additionally, the chain’s hiring practices have come under scrutiny, prompting efforts to evolve its business strategy.
In 2017, Hooters experimented with a new concept that did not feature its trademark wait-staff attire, attempting to modernize its approach in response to shifting consumer preferences. In 2022, the company denied rumors that it was shutting down or rebranding due to changing tastes.
Despite its current struggles, Hooters remains committed to restructuring its operations and ensuring its long-term presence in the restaurant industry. More updates are expected as the bankruptcy process unfolds.
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