The American Hooters business has filed for bankruptcy in Texas as it looks to restructure its finances by selling all 151 of its company-owned restaurants.
The sale, which still requires court approval, would transfer ownership to a group backed by two franchisees and some of the brand’s original founders. The group has pledged to return Hooters to its roots and make it more family-friendly.
Despite the bankruptcy filing, the company said all restaurants will remain open and operate as normal during the process. Rising costs, higher wages, and changing consumer habits have hit Hooters and other casual dining chains in recent years.