Hooters, the U.S.-based restaurant chain recognized for hen wings and skimpy wait-staff outfits for its “Hooters Women,” has filed for chapter safety.
HOA Restaurant Group filed the movement for Chapter 11 safety Monday within the North Texas Chapter Courtroom in Dallas.
The corporate bumped into monetary woes as its money owed mounted, nevertheless it says it intends to remain open and resolve its troubles inside months. A gaggle of the corporate’s unique founders that owns nearly a 3rd of Hooters’ U.S. areas, together with about half of its largest quantity eating places, plans to purchase and function extra of the shops, Hooters stated in a information launch.
“Our famend Hooters eating places are right here to remain and we’re taking motion to strengthen our enterprise to higher serve our valued prospects over the long run,” the corporate stated in a discover on its web site.
Hooters, based mostly in Atlanta, was based in Clearwater, Fla., in 1983. Bother had been brewing for some time.
Hooters had sponsored the No. 9 NASCAR automotive pushed by Chase Elliott since 2017, however final 12 months, Hendrick Motorsports ended its ties to the longtime sponsor as a result of it was not assembly its monetary commitments.
Its enterprise technique has confronted challenges through the years, together with lawsuits over its hiring of solely “Hooters Women,” an all-female serving employees wearing tight tank tops and shorts.
Final 12 months, it agreed to pay $250,000 US and supply different aid to settle a race and color discrimination lawsuit introduced by the U.S. Equal Employment Alternative Fee towards a Hooters outlet in Greensboro, N.C., after staff accused the situation of intentionally failing to recall Black staff after a COVID-motivated layoff.
In 2022, the restaurant refuted claims it was shutting down and rebranding attributable to altering buyer tastes.
In 2019, the Hooters hotel-casino off the Las Vegas Strip was offered to an Indian lodge firm and rebranded because the OYO Resort and On line casino.
In 2017, the corporate tried opening a restaurant that did not function wait employees in tight tops, as a check of a distinct method to its unique idea.
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