A number of restaurant businesses have declared bankruptcy in the last year, raising the possibility that another eating chain would follow suit.
According to Bloomberg, Hooters of America, which still operates hundreds of locations in Texas despite recent financial difficulties, is in negotiations to declare bankruptcy in the upcoming months.
According to the article, the corporation is preparing a filing with the legal firm Ropes & Gray, and the procedure is expected to start within the next two months. Bloomberg claims that the plans are not yet final.
In June 2024, the restaurant company shut down dozens of outlets nationwide, including at least eight in Texas. About 40 “underperforming” outlets across the country were shut down.
Chron noted at the time that some employees were shocked to learn of the closures. Consumers’ responses weren’t entirely negative because many of them at the time complained on social media about the subpar treatment at certain establishments.
According to Bloomberg, Hooters has witnessed a drop in demand and has struggled to keep foot traffic throughout the outages.
The restaurant, which debuted in 1983 and currently boasts over 420 locations in 29 countries, is well-known for its exposing attire and distinctive chicken wings.
This theme restaurant is well-known for drawing crowds and occasionally igniting controversy. For example, in 2020, a fifth-grader was requested to take off his Hooters-themed mask because a teacher thought it was inappropriate for class.
In 2024, a number of restaurant chains filed for bankruptcy, including Red Lobster and Buca di Beppo. A surge in bankruptcies in the restaurant industry over the past year was caused by rising prices and decreased traffic.
