If it seems like chain restaurants are dropping like flies, it’s because they are. Just last week, Bar Louie filed for bankruptcy and started closing locations. Last year, half a dozen big chains went bust, as well.
Now, we’ve got another chain to add to the pile: Hooters. The controversial sports bar chain known for wings (among other things) just filed for bankruptcy protection, though this one may not have a sad ending. Here’s what we know.
Why Did Hooters File for Bankruptcy?
Hooters of America LLC is planning to restructure its business, and the company wants to use bankruptcy as a tool to facilitate its restructuring. Right now, about 200 Hooters locations in the U.S. are company-owned, and almost 100 are owned by franchisees. Through bankruptcy, the company plans to sell all 200 of its restaurant locations to existing franchisees, including one company run by an original Hooters founder, Neil Keifer. Once the restructuring is complete, every Hooters location in the U.S. will be owned and operated by a franchisee.
Will Any Hooters Locations Close?
There are no immediate plans to close any Hooters locations, but that could change. The bankruptcy restructuring process is expected to take three to four months to complete, and part of that will include “evaluating the company’s operational footprint,” according to a press release. That usually means that some locations will probably close, but the decision hasn’t been made on which ones yet.
There are about 67 international Hooters locations outside of the U.S., but none of this news affects them.
Is Hooters Going Out of Business?
No, Hooters is not planning to go out of business despite having filed for bankruptcy. According to a Hooters website with information about the restructuring, the company’s hope is to create a “stronger financial foundation and streamlined operations” in the future.
Can I Still Use a Hooters Gift Card?
Yes, you can still use gift cards and purchase them during the bankruptcy process. Hooters plans to continue to operate normally during this time, so there shouldn’t be any disruption to customer’s restaurant experiences.
