Hooters, the U.S.-based restaurant chain identified for hen wings and “Hooters Girls” skimpy wait-staff outfits, has filed for chapter safety.
HOA Restaurant Group filed the movement for Chapter 11 safety Monday within the North Texas Chapter Court docket in Dallas.
The corporate bumped into monetary woes as its money owed mounted, but it surely says it intends to remain open and resolve its troubles inside months. A bunch of the corporate’s unique founders that personal virtually a 3rd of Hooters’ U.S. places, together with about half of its largest quantity eating places, plans to purchase and function extra of the retailers, Hooters stated in a information launch.
“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 corporate stated in a discover on its web site.
Hooters, primarily based in Atlanta, Georgia, was based in Clearwater, Florida, in 1983. Hassle had been brewing for some time.
Hooters had sponsored the No. 9 NASCAR automotive pushed by Chase Elliott since 2017, however final yr, Hendrick Motorsports ended its ties to the longtime sponsor as a result of it was not assembly its monetary commitments.
Its enterprise technique has confronted challenges over time, together with lawsuits over its hiring of solely “Hooters Girls” to serve prospects.
Final yr it agreed to pay $250,000 and supply different aid to settle a race and colour discrimination lawsuit introduced by the U.S. Equal Employment Alternative Fee in opposition to a Hooters outlet in Greensboro, North Carolina.
In 2022, the restaurant refuted claims it was shutting down and rebranding attributable to altering buyer tastes.
In 2019, the Hooters hotel-casino off the Las Vegas Strip was bought to an Indian lodge firm and rebranded because the OYO Resort and On line casino.
In 2017, the corporate tried opening a restaurant that didn’t characteristic wait-staff in tight tops, as a take a look at of a special method to its unique idea.
This story was initially featured on Fortune.com
