VIRGINIA — The Hooters restaurant chain, famous for its female servers dressed in orange short shorts and snug “Hootie the Owl” tops, announced on Monday that they have filed for Chapter 11 bankruptcy.
Virginia has 11 Hooters locations Chantilly, Chesapeake-Greenbrier, Chester, Chesterfield, Fairfax, Fredericksburg, Hampton, Norfolk, Potomac Mills, Richmond, and Williamsburg.
The intricate bankruptcy submission aims to maintain numerous locations operational.
"Hooters restaurants are here to remain," stated CEO Sal Melilli on Monday.
As stated, the corporation has come to a preliminary accord with a collective of present Hooters license holders for the purchase and management of specific company-operated sites. The purchasing entity, comprising founding members of Hooters, presently holds and runs more than 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, according to the firm. It also noted that the Chapter 11 proceedings do not affect the current franchise establishments.
Hooters eateries are staying open and plan to maintain their operations as usual throughout the Chapter 11 process. Nonetheless, the firm mentioned that they are now assessing their operational presence with plans to channel efforts into enhancing their most robust assets.
During the previous summer, numerous Hooters outlets nationwide shut down for good because of "challenges posed by the market circumstances," as stated by the firm back then.
Neil Kiefer stated on behalf of the franchisee group taking over several company-owned stores, “Looking ahead, our focus is on reviving the Hooters brand’s origins and streamlining operations through a complete franchising approach aimed at achieving robust, sustained expansion in the long term.”
To address patrons' inquiries regarding Hooters' future direction, the firm initiated a program. "Our Future" web portal.
Besides its alluring “Hooters Girls” waitresses – often considered the primary attraction of the laid-back dining spot – the establishment also boasts a menu that features hamburgers , sandwiches , steaks, seafood dishes, starters, and c hicken wings Many Hooters establishments possess liquor permits. Additionally, the majority of their eateries sell Hooters-branded T-shirts, hoodies, along with an array of memorabilia and trinkets.
Hooters was established on April 1, 1983, by six entrepreneurs, with the inaugural eatery opening on October 4, 1983, in Clearwater, Florida.
The firm currently operates worldwide with its headquarters situated in Atlanta, Georgia.
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