Renowned American restaurant chain Hooters of America has filed for bankruptcy protection in Texas as part of a major restructuring effort aimed at addressing its mounting debt of $US376 million (approximately $601 million AUD). The company announced that it will transfer ownership of its company-operated restaurant locations to a group backed by the original founders of the brand, with the aim of strengthening its financial future. Despite the bankruptcy filing, Hooters has confirmed that its restaurants will remain open and operational during the transition process. The company currently manages 151 restaurants directly, while an additional 154 are operated by franchisees across the United States. The announcement reassures loyal patrons that the dining experience and brand identity that have defined Hooters for decades will remain intact. “Our iconic Hooters restaurants are here to stay,” said Sal Melilli, Chief Executive of Hooters of America. “Today’s announcement marks a crucial step in our efforts to strengthen Hooters’ financial foundation.”
 

Hooters is best known for its signature chicken wings, American pub-style food, and its distinctive Hooters Girls – a trademark of the brand's casual and entertainment-focused dining experience since its founding in 1983. However, like many other casual dining chains, the company has struggled with rising operational costs, increased wages, and a shift in consumer spending habits that have hit the restaurant industry hard in recent years. The financial terms of the ownership transfer deal have not yet been publicly disclosed, and the restructuring still requires approval from a US bankruptcy court. Hooters anticipates completing the process within four months.
 

Neil Kiefer, a member of the buyer group and current CEO of the original Hooters location in Clearwater, Florida, emphasized the team’s dedication to the brand’s legacy. “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,” he said in a statement to CNBC. This announcement comes amid a turbulent time for the casual dining sector in the United States. In 2024, several major restaurant chains including TGI Fridays, Red Lobster, Bucca di Beppo, and Rubio’s Coastal Grill also filed for bankruptcy due to financial pressures. Hooters now joins a growing list of dining establishments forced to reevaluate their business models and operational structures in the face of changing economic realities.
 

Outside of the US, Hooters has had limited international presence in recent years. In Australia, the brand currently has just one remaining location, situated in Parramatta, Sydney. It is still unclear whether the global franchise units will be affected by the restructuring in the United States. Founded in 1983 in Clearwater, Florida, Hooters gained rapid popularity for its relaxed atmosphere, sports-centric environment, and iconic branding. While the company has faced criticism and controversy over the years, it has remained a recognizable name in American dining culture for more than four decades. The bankruptcy proceedings mark a turning point for the brand, which now looks to reclaim financial stability while retaining its distinct identity. Industry observers will be watching closely to see if Hooters’ strategy to return to its roots under the guidance of its founding members will be enough to keep the chain relevant and competitive in a crowded and evolving restaurant market.