Restaurants come and go as economies and customer habits change, and the controversial chain Hooters is trending toward going. According to a report by Bloomberg , Hooters is reportedly in talks with a law firm to potentially file for bankruptcy within the next two months. The goal of the bankruptcy filing would be to restructure the business and better manage its debt load.
Like many others in the food and beverage industry, Hooters has long been plagued by declining foot traffic and restaurant sales. According to data compiled by Bloomberg, the chain sold approximately $300 million in asset-backed securities in 2021 — a move typically used to raise capital and improve cash flow by monetizing physical assets. Hooters also closed an unspecified number of locations in 2024, leaving it without about 300 stores worldwide — 18% fewer than in 2018.
In retrospect, Hooters may have been in trouble for a while. In 2018, a Japanese store rented Hooters tables as workspace when the restaurant wasn't busy. Hooters also spiked 2022 rumors that it would shut down and launch a rebrand .
Perhaps the biggest sign of trouble came this past summer, when Hooters lost its longtime NASCAR team sponsorship over its failure to meet contractual obligations, resulting in a $1.7 million lawsuit over unpaid sponsorship fees. Hooters' history of controversy, explained Hooters has long drawn ire for the working conditions of its servers, who are mostly young women officially known as "Hooters Girls.
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