The American restaurant chain Hooters, famous for its chicken wings and revealing waitress uniforms, has initiated bankruptcy proceedings.
HOA Restaurant Group filed for Chapter 11 protection Monday in the North Texas Bankruptcy Court in Dallas.
The company has faced financial difficulties due to mounting debt, but says it plans to continue operating and resolve the existing problems within a few months.
The original founding group, which owns nearly a third of Hooters restaurants in the U.S., including about half of the largest, intends to acquire and operate more locations, according to a Hooters press release.
“Our iconic Hooters restaurants will remain with us, and we are taking steps to strengthen our business to better serve our valued customers going forward,” the company said in a statement on its website.
Based in Atlanta, Georgia, Hooters was founded in Clearwater, Florida in 1983. It has been struggling financially for some time.
Hooters had sponsored the No. 9 Nascar car driven by Chase Elliott since 2017, but Hendrick Motorsports ended its partnership with the longtime sponsor last year due to its failure to meet financial obligations.
The company's business strategy has faced challenges in recent years, including lawsuits over its reliance solely on “Hooters Girls” to serve customers.
Last year, the company agreed to pay $250,000 (£193,000) and provide other relief to resolve a race and colour discrimination lawsuit brought by the US Equal Employment Opportunity Commission against a Hooters restaurant in Greensboro, North Carolina.
In 2022, the restaurant dismissed rumors of closing and rebranding due to changes in customer preferences.
In 2019, Hooters Hotel and Casino on the Las Vegas Strip was sold to an Indian hotel company and renamed OYO Hotel and Casino.
In 2017, the company attempted to open a restaurant where waitresses did not wear tight tops, as an experiment in changing its original concept.
Sourse: breakingnews.ie
