Hooters Plans To File For Bankruptcy

Hooters of America is planning to file for bankruptcy in the upcoming months.

Hooters is in talks with creditors and law firm Ropes & Gray about restructuring the business through bankruptcy court.

In 2021, the chain sold $300 million in asset-backed bonds.

The once-popular chain has been facing financial difficulties as foot traffic has decreased at dozens of its locations.

Hooters to declare bankruptcy.

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Per Yahoo Finance:

Hooters of America is working with creditors on a plan to restructure the business through bankruptcy court in the coming months, according to people with knowledge of the arrangements.

The casual dining chain is working with law firm Ropes & Gray to ready a filing, said the people, who added the plans are not final and asked not to be identified discussing private preparations. The court process would likely begin within the next two months, the people said.

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The company was working to address its debt load with its lawyers as well as turnaround advisers from boutique firm Accordion Partners, Bloomberg previously reported. Some of Hooters’ debtholders have tapped Houlihan Lokey Inc. for advice.

Representatives for Hooters, Accordion Partners and Ropes & Gray didn’t respond to requests for comment. A representative for Houlihan declined to comment.

Hooters has faced liquidity issues as foot traffic has declined and has shuttered several locations. The chain sold about $300 million in asset-backed bonds in 2021, according to data compiled by Bloomberg.

The asset-backed bonds are packaged as whole-business securitizations — through which a company pledges most of its assets, including franchise fees, as collateral — a product popular among restaurant chains, fitness clubs and other businesses with franchised stores.

Hooters is reportedly making plans to file for bankruptcy

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Per The New York Post:

Hooters — famous for dressing its waitress in tight-fitting T-shirts to sling wings and beer — could be going belly-up.

The casual dining chain is preparing for a potential bankruptcy filing as it works with creditors on a plan to restructure its operations, according to Bloomberg News.

The has engaged the law firm Ropes & Gray to assist with the process, individuals familiar with the discussions told the outlet.

While no final decision for seeking Chapter 11 protection has been made, a filing could take place within the next two months, the sources said.

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