MASON, Ohio — Restaurant chain Hooters filed for Chapter 11 bankruptcy protection on Monday, aiming to restructure its $376 million debt while assuring customers it remains committed to its future.
Hooters plans to sell 151 corporate-owned restaurants to a buyer group that currently operates 30 U.S. locations, pending approval from a U.S. bankruptcy judge. The company attributes its financial difficulties to inflation, rising labor costs, and declining customer traffic—challenges also faced by other casual dining chains like Red Lobster and TGI Fridays.
The company has stated it will not close locations during the bankruptcy process and will maintain normal operations. “Our renowned Hooters restaurants are here to stay,” said Hooters of America CEO Sal Melilli. The chain anticipates exiting bankruptcy in three to four months, transitioning all locations to franchisee ownership upon completion.
In Ohio, Hooters operates four locations: Dayton at 6851 Miller Lane, Mason at 9890 Escort Drive, Springdale at 12185 Springfield Pike, and Toledo at 4782 Monroe St. Nearby, Northern Kentucky hosts two additional sites: Newport at 301 Riverboat Row and Florence at 7200 Houston Road. Across the U.S., Hooters has more than 300 locations, with 151 company-owned and 154 franchisee-operated.