Hooters is reportedly in talks to file for bankruptcy in the coming months. This comes after the company shuttered several of its locations last year, following a decline in patrons.
Hooters of America is working with the Ropes & Gray law firm to prepare for a bankruptcy filing as the business addresses its debt and liquidity, people with knowledge of the situation told Bloomberg.
The company is seeking to restructure Hooters through bankruptcy court, the sources said, adding that the restaurant’s bankruptcy plans are not yet final, but that if they proceed, the process will begin in the next two months.
The move comes after Hooters has experienced a decline in patrons. In 2021, the restaurant also sold around $300 million in asset-backed bonds, Bloomberg reported.
“The asset-backed bonds are packaged as whole-business securitizations — through which a company pledges most of its assets, including franchise fees, as collateral — a product popular among restaurant chains, fitness clubs and other businesses with franchised stores,” the outlet noted.
As Breitbart News reported, Hooters closed dozens of locations last summer as inflation continued choking customers and companies in then-President Joe Biden’s America.
“Like many restaurants under pressure from current market conditions, Hooters has made the difficult decision,” a Hooters spokesperson told New York Post at the time, referring to the shut down some of the company’s restaurants.
Approximately 40 of its 300 Hooters restaurants across the globe had been shuttered at the time.
Social media commenters were quick to blame the potential bankruptcy on allegations that Hooters has gone woke:
Alana Mastrangelo is a reporter for Breitbart News. You can follow her on Facebook and X at @ARmastrangelo, and on Instagram.
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