Hooters Aims for Revival with Founder-Backed Acquisition Amid Bankruptcy​

• Hooters filed for bankruptcy with $376M in debt and plans to sell all company-owned restaurants to a franchise group backed by original founders.
• Rising costs and lower consumer spending have hit casual dining hard—joining other bankrupt chains like TGI Fridays and Red Lobster.
• The buyer group aims to revive the brand by “going back to its roots,” with the deal expected to close in 3–4 months pending court approval.

Hooters of America has filed for bankruptcy. The iconic restaurant chain, known for its wings, orange shorts, and “casual vibes,” is drowning in $376 million worth of debt and just filed Chapter 11 in Texas this week.

The plan? Sell off all of its company-owned locations to a group backed by some of the original founders and a pair of longtime franchise operators. Basically, they’re trying to keep the brand alive—just under new(ish) management.

What Went Wrong?

Honestly, it’s not just Hooters. Casual dining in general has been taking hit after hit.

Inflation, rising food and labor costs, fewer people eating out—especially with how tight money’s been lately—it all adds up. And Hooters just couldn’t keep pace.

The company still owns 151 locations, and another 154 are run by franchisees, mostly in the U.S. The new buyer group, made up of two current franchise operators with 30 solid-performing locations (mostly in Florida and Illinois), is stepping in to buy the rest.

No word yet on what the actual purchase price is—but the deal needs approval from a bankruptcy judge before anything goes through.

“Back to Its Roots”—Whatever That Means

The new owners say they wanna take Hooters “back to its roots.” Which, okay—sure. Chicken wings, beer, football on TV, and the, uh, infamous uniform? That’s pretty much always been the gig.

Neil Kiefer, one of the buyers and CEO of the OG Clearwater, Florida Hooters (yep, the first-ever one), said:

“With over 30 years of hands-on experience across the Hooters ecosystem, we know our customers and how to keep ‘em coming back.”

Cool. Now they just have to prove it.

Bankrupt, But Not Done

To keep things moving, Hooters secured about $35 million in financing from its current lenders to help push this bankruptcy deal through. They’re aiming to wrap everything up and come out the other side within three to four months.

But this isn’t just a Hooters problem. Chains like TGI Fridays, Red Lobster, Bucca di Beppo, and Rubio’s Coastal Grill all filed for bankruptcy last year too.

People just aren’t spending like they used to—and restaurants, especially sit-down ones, are feeling it. Big time.

Prices Up, Customers Down

Here’s a wild stat: restaurant prices have jumped about 30% in the last five years. That’s more than overall inflation, according to the Fed. No wonder people are cooking at home more or going for cheaper, faster options.

Final Thoughts

Hooters isn’t gone—but it is definitely changing. The brand’s future now rests in the hands of franchisees and a new-old leadership crew who think they can revive the magic. Will it work? Maybe. Maybe not.

What’s clear is this: the casual dining space isn’t what it used to be. And Hooters? It’s got some serious work ahead if it wants to stay relevant in 2024 and beyond.