MARYLAND — The Hooters restaurant chain, famous for its female servers dressed in orange short shorts and snug “Hootie the Owl” tops, declared on Monday that they have filed for Chapter 11 bankruptcy protection.
Maryland is home to three Hooters restaurants: Boardwalk , Laurel and Waldorf.
The intricate bankruptcy filing has been designed to maintain operations at numerous Hooters locations.
"Hooters restaurants are here to remain," stated CEO Sal Melilli on Monday.
As stated, the firm has come to a preliminary accord with a cohort of present Hooters license holders for the purchase and management of specific company-operated sites. This purchasing team, comprising founding members of Hooters, presently holds and runs over 30% of the domestically franchised Hooters outlets, encompassing 14 out of the top 30 revenue-generating eateries.
In conjunction with the proposed sale, Hooters filed voluntary petitions for chapter 11 in a Texas court. The company said it expects to emerge from chapter 11 bankruptcy protection in approximately 90 to 120 days.
The specific company-operated Hooters outlets up for sale have yet to be identified, and the Chapter 11 proceedings will not affect current franchise sites, according to the firm.
Hooters eateries are staying open and plan to keep operating as usual throughout their Chapter 11 process. Nonetheless, the firm mentioned they are now assessing their overall operations and intend to allocate funds into what they consider their most valuable assets.
During the previous summer, numerous Hooters restaurants throughout the country shut down indefinitely as a result of "challenges posed by the market situation," as stated by the corporation at that time.
Neil Kiefer stated on behalf of the franchisee group taking over several company-owned outlets, “Looking ahead, our focus is on revitalizing the Hooters brand by returning it to its origins and streamlining...operations through a dedicated franchising approach aimed at fostering sustained, long-term expansion.”
To address customers' inquiries regarding Hooters’ future direction, the firm initiated a program. "Our Future" web portal.
Aside from its iconic "Hooters Girls" waitresses—often considered the primary attraction—the establishment is famous for serving up burgers, sandwiches, steaks, seafood dishes, starters, and buffalo-style chicken wings. Many Hooters venues have permits to serve alcohol. Additionally, customers can purchase Hooters-branded T-shirts, hoodies, along with an array of memorabilia and trinkets at most of their outlets.
Hooters was established on April 1, 1983, by six entrepreneurs, with their inaugural eatery opening on October 4, 1983, in Clearwater, Florida. Today, the corporation operates outlets worldwide and is based in Atlanta, Georgia.
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