It’s the end of an era.
Hooters is preparing to file bankruptcy in the coming months, according to Bloomberg News.
The restaurant chain known for waitresses in cheeky orange shorts and low-cut white tank tops is reportedly struggling with cash flow due to low foot traffic.
Zero Hedge reported:
The Atlanta-based casual dining chain has enlisted the legal muscle of Ropes & Gray to handle its restructuring, while turnaround specialists at boutique advisory firm Accordion Partners are helping sort out the financial mess, according to sources who requested anonymity while discussing private dealings. The bankruptcy process is expected to kick off within the next two months.
Hooters’ creditors aren’t sitting idly by either. Some debtholders have tapped investment banking powerhouse Houlihan Lokey Inc. for advice, underscoring the severity of the chain’s financial troubles.
Declining Sales and Mounting Debt
The company has been struggling with cash flow issues as customers increasingly flock to other casual dining and fast-casual options. In recent years, several Hooters locations have closed their doors, a clear sign that the once-popular brand known for its wings and waitstaff is facing an existential crisis.
Adding to the financial woes, Hooters took on significant debt in 2021, issuing about $300 million in asset-backed bonds. These bonds, structured as whole-business securitizations, used the company’s franchise fees and other assets as collateral—a move common among restaurant chains looking to leverage their brand value for quick cash.
*HOOTERS IN TALKS TO PREPARE BANKRUPTCY FILING IN COMING MONTHS
noooo
— zerohedge (@zerohedge) February 21, 2025
I wonder why? pic.twitter.com/obAtoxC1Uk
— LogicalQueries (@JoshuaCalledMe) February 21, 2025
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