Hooters set to file for bankruptcy as diners reveals rival has ‘steadily been stealing’ customers for years
A BANKRUPTCY filing could be imminent for Hooters of America.
The popular restaurant chain is reportedly working on a plan to restructure its operations alongside creditors.
Court proceedings could start as soon as April, according to what sources close to the matter told Bloomberg on Friday.
Hooters and law firm Ropes & Gray are preparing the filing in February, but final plans are not yet definitive, per the sources.
Hooters is addressing a considerable debt it accrued over the years alongside lawyers.
In 2021, it sold about $300 million worth of asset-backed bonds.
The U.S. Sun has contacted Hooters for comment.
The restaurant chain has also faced a steady decline in foot traffic and had several closures in the last year alone.
In June 2024, Hooters conducted a wave of shutdowns nationwide for "underperforming" restaurants.
This was on top of several from weeks prior and a few others that locked their doors just days before the closure announcement from the company.
At the end of the year, at least 41 had been shuttered in 14 states, per News Center Maine.
Texas lost the most Hooters locations with 16 shuttered.
Hooters cited "pressure from current market conditions" as a significant reason behind the abrupt removal of the restaurants.
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