Apr 1, 2025 - Business

Hooters files for bankruptcy after founder-led buyout deal

Rebecca Falconer

A Hooters restaurant is seen on February 24, 2025 in Pembroke Pines, Florida. Hooters of America is reportedly working with creditors on a plan to restructure the business through bankruptcy court. — A Hooters restaurant in Pembroke Pines, Florida. Photo: Joe Raedle/Getty Images

Hooters of America filed for bankruptcy protection in Texas on Monday and announced a plan to address its debt by bringing back the restaurant chain's founders.

The big picture: Hooters restaurants "remain open to serve customers and will continue to operate in a business-as-usual manner" during the Chapter 11 reorganization after the firm filed in the U.S. Bankruptcy Court in the Northern District of Texas, per a company statement.

It reached an in-principle deal with a buyer group comprising two Hooters franchisees that include company founders "who collectively currently own and operate over 30% of the domestic franchised Hooters locations," per the statement.
These include "14 of the 30 highest volume restaurants," mainly in the areas of Tampa Bay, Florida, and Chicago, Illinois.

What they're saying: "Our renowned Hooters restaurants are here to stay," Hooters of America CEO Sal Melilli said in a statement.

"Today's announcement marks an important milestone in our efforts to reinforce Hooters' financial foundation and continue delivering the guest-obsessed hospitality experience and delicious food our customers and communities have come to expect."

Flashback: The first Hooters opened in Clearwater, Florida, on April Fools' Day 1983, per a company post.

The restaurant that's known for its Buffalo-style chicken wings and "Hooters Girls" waitstaff grew from Clearwater to Tampa to Atlanta, Georgia, where the company has its headquarters.

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Hooters files for bankruptcy after founder-led buyout deal

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