Bad news for Hooters fans. The restaurant chain closed more than 30 locations across several U.S. states on Wednesday, raising uncertainty about the company’s future after it filed for bankruptcy in March of this year. Here’s everything we know so far.
Which Hooters Restaurants Have Closed?
So far, the company has not provided an official list of the locations that have shut down; however, users have reported that the following branches are already closed:
- Sanford, Florida
- Orlando, Florida – Kirkman Road
- Kissimmee, Florida – Osceola Parkway
- Melbourne, Florida
- Atlanta, Georgia – Downtown
- Douglasville, Georgia
- Gwinnett, Georgia
- Valdosta, Georgia
- Greenwood, Indiana
- Rockford, Illinois
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- Newport, Kentucky
- Flint, Michigan
- Taylor, Michigan
- St. Louis, Missouri – Downtown
- Charlotte, North Carolina – South Boulevard
- Columbia, South Carolina
- Rock Hill, South Carolina
- Murfreesboro, Tennessee
- Memphis, Tennessee – Downtown
- Nashville, Tennessee – Harding Place
- Grapevine, Texas
- Houston, Texas – 120 FM 1960 West
- San Marcos, Texas
- Tuscaloosa, Alabama
- Tallahassee, Florida
- Jacksonville, Florida
- Lafayette, Indiana
- Evansville, Indiana
- Detroit, Michigan
- Madison, Wisconsin
Why Did Hooters Close Its Restaurants?
At the end of March, the restaurant chain announced it had filed for Chapter 11 bankruptcy in a Texas court after several weeks of attempting to resolve its financial difficulties. These issues were largely due to inflation, rising labor and food costs, and a decrease in consumer spending.
Before that, the company had already shut down several locations it deemed unprofitable. However, it stressed that this did not signal the end of the brand. Hooters aimed to eliminate its $376 million debt by selling all of its corporate-owned restaurants to two existing Hooters franchisees, who currently operate 30 locations in states like Florida and Illinois.
At the time, the company stated that “Hooters is here to stay” and that it would continue to serve its customers. The recent closure of more than 30 locations has surprised many patrons, and as of now, the company has not offered a clear explanation.
How many Hooters restaurants are there?
Currently, the company owns and operates 151 locations, in addition to another 154 restaurants operated by franchises, mainly in the United States.
History of Hooters
The company’s history began on October 4, 1983, when its first restaurant opened in Clearwater, Florida. A year later, in 1984, Robert H. Brooks, along with a group of investors from Atlanta, acquired the franchise rights for the famous chain.
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Over time, Brooks became the company’s majority shareholder and took on the role of president. Under his leadership, Hooters experienced impressive growth, expanding from a single restaurant to more than 425 locations worldwide.
The restaurant chain specializes in chicken wings, beer, and a variety of bar-type dishes. However, it is also known for the eye-catching uniforms worn by its waitresses. These employees, known as “Hooters Girls,” must meet strict appearance standards while on the job.
What is Chapter 11 of the U.S. Bankruptcy Code?
Filing for bankruptcy protection under Chapter 11 means that a company is on the brink of ceasing operations, but believes it can recover its success if given the opportunity to reorganize its assets, debts, and business operations.
By filing under Chapter 11, the company seeks protection from creditors while restructuring its business and debt. This type of protection is available to corporations, individual entrepreneurs, and partnerships. Under Chapter 11, the company’s management continues to oversee daily operations. However, major business decisions must be approved by the bankruptcy court.
