Hooters shuts down over 30 restaurants during bankruptcy restructuring
- Hooters of America has closed over 30 restaurant locations as part of its Chapter 11 bankruptcy restructuring process.
- The closures were concentrated in multiple states, including significant locations in Florida and Texas.
- The transition to a pure franchise model aims to enhance profitability and success across remaining Hooters locations.
In the United States, Hooters of America, the parent company of the Hooters restaurant chain, has recently closed more than 30 of its corporate-owned restaurants across various states as a part of its Chapter 11 bankruptcy proceedings. The closures mark a significant step in a restructuring effort that aims to facilitate a founder-led buyout while transitioning toward a franchise-only model, which the company believes will better position it for future success. As reported, Hooters has been directly impacted by this restructuring, which was initiated to address operational challenges and improve profitability. The closures have involved restaurants in at least ten states, including well-known locales in Florida and Texas. The decision comes with the acknowledgment that certain locations were underperforming, and this strategy reflects a broader plan for the company to enhance the remaining stores' performance by focusing on higher-volume locations and franchises. Neil Kiefer, the CEO of Hooters Inc., has emphasized the commitment to improving the customer experience and the overall operational efficiency within these remaining locations. He noted that the company's aim is to