Restaurant chain known for uniformed waitresses is ‘going bankrupt’
The American restaurant chain Hooters, famous for its waitresses wearing tight-fitting sporty uniforms, is reportedly heading toward bankruptcy.
Hooters is preparing to file for bankruptcy to restructure its business likely in the next two months, sources told Bloomberg on Friday. The plans, underway with the law firm Ropes & Gray, are not definite.
The casual dining chain has experienced a drop in customers and closed some locations in recent years. In 2021, Hooters sold roughly $300million in bonds backed with assets which included franchise fees.
Hooters went ‘from humble beginnings to worldwide success’, according to the history page on its website.
The first Hooters opened in 1983 in Clearwater, Florida, when ‘six businessmen with no restaurant experience whatsoever got together to open a place they couldn’t get kicked out of’, states the site.
‘More than three decades later, the Hooters brand has grown into an international sensation, with more than 420 Hooters in 29 countries,’ it states.
‘How do you say Hooters in all those languages? Here’s a hint. It’s just Hooters.’
The chain’s restaurants serve sports bar-type fare, beer and are equipped with TV screens broadcasting popular games.
Its waitresses, called Hooters Girls, wear short orange shorts and low-cut tank tops or T-shirts with the company’s name in orange and an owl’s eyes behind the two O’s in Hooters.
The signature look has prompted the company to include a section in its frequently asked questions on whether the public can buy the Hooters Girl uniform.
‘The Hooters Girl is every bit as special and coveted to us as she is to you. As a result, the Hooters Girl uniform is only available to actively employed Hooters Girls. We are very protective of our girls and our brand,’ it reads.
‘We do, however, offer the classic Hooters Girl orange shorts. We also sell a ribbed tank top and the lycra tank top just like our girls wear. Name tags, pouches, and panty hose are not available to the public.’
Hooters has been working on its debt issues with its attorneys and a boutique firm, Accordion Partners. Debtholders have also reportedly asked Houlihan Lokey Inc to advise.
Its reported bankruptcy preparations come as numerous restaurant chains have closed more locations in the struggle to survive. Last week, the casual diner chain Denny’s confirmed it is closing 38 more locations on top of the 150 it had already announced would be axed.
Retail stores in the US are also in trouble, and a research group predicts that 15,000 stores will close across the country this year – double the figure last year.
