Hooters, a sports bar known for its chicken wings and scantily clad waitresses, is in financial trouble.
The restaurant’s parent company, Hooters of America, filed for Chapter 11 bankruptcy on March 31, 2025.
The company is using this process to restructure its $376 million debt and has plans to sell its 151 company-owned restaurants to a franchise group backed by its original founders.
While the bankruptcy process unfolds, Hooters intends to keep its restaurants operational, expecting to complete the deal and emerge from bankruptcy in three to four months with $35 million in financing from its existing lenders.
“With over 30 years of hands-on experience across the Hooters ecosystem, we have a profound understanding of our customers and what it takes to not only meet, but consistently exceed their expectations,” said Neil Kiefer, CEO of Hooters Inc., on behalf of the Buyer Group. “As we look toward the future, we are committed to restoring the Hooters brand back to its roots and simplifying HOA’s operations by adopting a pure franchise model that will maximize the potential for sustainable, long-term growth.”
Is Hooters Closing Any U.S. Locations?
No specific announcements have been made about permanent closures tied to this filing. However, the situation could evolve depending on the outcome of the sale and financial restructuring.
The bankruptcy filing follows months of speculation and preparations reported earlier this year, driven by challenges like declining foot traffic, rising costs, and a significant debt load, including $300 million in asset-backed bonds from 2021.
What Is the History of Hooters?
Hooters, the restaurant chain known for its casual dining and sports bar atmosphere, was founded on October 4, 1983, in Clearwater, Florida.
The concept was the brainchild of six businessmen: Lynn D. Stewart, Gil DiGiannantonio, Ed Droste, Billy Ranieri, Ken Wimmer, and Dennis Johnson.
The group aimed to create a place where they could enjoy good food, cold beer, and a fun, laid-back vibe—essentially, a spot they’d want to hang out at themselves.
The name “Hooters” came from a mix of playful inspiration and branding savvy. It’s a nod to the owl logo (with “hooters” being slang for an owl’s call) and a cheeky wink at the chain’s focus on attractive, scantily clad waitresses—later dubbed “Hooters Girls.”
The founders reportedly tossed around hundreds of name ideas before settling on this one, knowing it would stick in people’s minds. They weren’t wrong.
The first Hooters opened its doors with a simple menu: wings, burgers, sandwiches, and seafood, paired with a beachy, Florida vibe.
The wings, in particular, became a signature item, served with a variety of sauces that remain a draw today. The original location was a modest spot, but it quickly gained traction, fueled by its unapologetic blend of sex appeal and comfort food.
The founders had no grand franchise plans at first—they just wanted a successful local joint—but the concept took off.
By 1984, the chain started expanding through franchising, with new locations popping up across the U.S. The Hooters Girls became central to the brand, wearing the now-iconic uniform of white tank tops and orange shorts.
The chain peaked in the U.S. with over 400 locations by the early 2000s, though it’s since scaled back to around 300 domestically as of recent years.
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