Hooters has filed for Chapter 11 bankruptcy due to mounting debts of $376 million, facing significant challenges in an increasingly competitive landscape. Founders have partnered with investors to buy back restaurants from a private equity firm and aim to transition the brand towards a 'family-friendly' atmosphere. This restructuring follows a pattern of rising costs impacting fast-casual dining, with Hooters also having to close 44 restaurants previously. The company has clarified that it is not going out of business and that menu offerings will remain unchanged as it looks to stabilize and thrive again.
Hooters has filed for Chapter 11 bankruptcy protection while planning to return to a 'family-friendly' atmosphere amidst growing competition and economic challenges.
The chain’s restructuring comes with a 376 million dollar debt burden, aiming to resolve financial issues while maintaining its customer base.
As part of their restructuring, founders of Hooters plan to buy back restaurants and franchise remaining locations to stabilize the business after significant losses.
Hooters’ struggles highlight the wider challenges fast-casual restaurants face with rising costs and inflation, forcing them to adapt to a competitive marketplace.
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