People have been talking about this for weeks, and today, it finally came out: Hooters is filing for bankruptcy.
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HOA Restaurant Group, Hooters’ parent company, says that due to increased debt, it had to file Chapter 11 in Dallas at the North Texas Bankruptcy court in hopes of restructuring the company while still staying open and operational.
$376 Million in the Red
Hooters is currently $376 million in the hole, and while some warned that the chain wing restaurant was in trouble, many didn’t think it would get to this point.
What Happened to Hooters?
Along with rising costs, it appears Hooters isn’t the same restaurant it was years ago. The brand name has taken a serious hit, and long-running legal disputes and sponsorships, like Hendrick Motorsports, have gone away over the years, which has really hurt their bottom line.
What’s Next: “Re-Hooterization”
CEO Neil Keifer claims they need to regroup, sell some of their underperforming restaurants, and “re-Hooterize” the company to get back to where Hooters was once before.
There are currently 151 company-owned Hooters locations in 22 U.S. states, including Illinois. The company also maintains over 150 franchise locations across 19 states and 17 countries.
Here’s What It Means for Illinois
There are currently 16 different Hooters locations in Illinois, with one in Rockford at 6904 Argus Drive…