Hooters of America closed about 30 company-owned restaurants Thursday to “optimize” the business as it prepares to emerge from bankruptcy.
The closed locations are concentrated in the Eastern half of the country, with a number in Florida, Georgia and Texas, according to local media reports. They follow the closure of about 40 restaurants last summer and leave the casual-dining "breastaurant" chain with about 200 U.S. locations.
In a statement, Hooters of America (HOA) called the closures a “difficult decision” but said that “Hooters is here to stay.”
“By optimizing our business in support of our long-term goals, Hooters will be well-positioned to continue our iconic legacy under a pure franchise business model,” the company said.
Atlanta-based HOA filed for Chapter 11 bankruptcy in March, citing inflation and industry pressures as well as a heavy debt load. The chain known for chicken wings and scantily clad waitresses had been struggling for years.
Its exit plan is to sell more than 100 of its company-owned restaurants to a pair of franchisees, Hooters Inc. and Hoot Owl Restaurants. That deal is expected to close in August and will give the buyer group control of about 65% of Hooters’ U.S. locations.
In addition to operating most of the chain, the group will also act as the franchise support entity for other Hooters franchisees. It will oversee the national ad fund, central purchasing organization, franchise development and other duties.
The buyers include the original founders of Hooters, who operate some of the brand’s most successful locations under Clearwater, Florida-based Hooters Inc. They plan to bring that same operating philosophy to the rest of the system, including bringing back some of the chain’s original recipes and making waitresses’ uniforms less revealing.
The deal will bring the brand full circle after the founders sold the development rights in 1984 to what would become Hooters of America. HOA took the brand worldwide, while the founders continued to operate Hooters restaurants in Florida and Illinois.
In a press release Thursday, the buyer group said the additional closures were expected.
“Decisions about store closures are never easy to make but all parties are completely aligned in bringing the necessary resources required to make the remaining 200 domestic Hooters locations as successful as possible,” said Hooters Inc. CEO Neil Kiefer in a statement.
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