Hooters, the iconic restaurant chain recognized for its orange-clad wait staff and signature chicken wings, has suddenly shuttered dozens of company-owned locations as part of a restructuring effort, according to a company spokesperson.
The closures come as Hooters navigates Chapter 11 bankruptcy and prepares for a major shift to a franchise-only business model.
The company announced the closures effective June 4, stating, "After careful consideration of what is needed to best position our company for the future, Hooters made the difficult decision to close certain company-owned locations, effective June 4, 2025,” spokesperson Jack Schaible said in an emailed statement.
“Importantly, Hooters is here to stay, and by optimizing our business in support of our long-term goals, Hooters will be well-positioned to continue our iconic legacy under a pure franchise business model,” Schaible said, noting that the company is committed to supporting team members affected throughout the process.
In a statement also in March, CEO Sal Melilli described the move as a pivotal moment for the brand, stating, "Today’s announcement marks an important milestone in our efforts to reinforce Hooters’ financial foundation and continue delivering the guest-obsessed hospitality experience and delicious food our customers and communities have come to expect,” in the same announcement.
The company is awaiting court approval for $40 million in debtor-in-possession financing from existing lenders, which includes $35 million in new capital to ensure normal operations during the restructuring process. Hooters also clarified that franchise-owned locations, both domestically and internationally, are not impacted by the Chapter 11 process.
The Hooters brand was acquired by private equity firms Nord Bay Capital and TriArtisan Capital Advisors in 2019, but the new buyer group—composed of existing franchisees—now includes the original founders and Neil Kiefer, CEO of franchise group Hooters Inc.
The abrupt closures and bankruptcy filing place Hooters among a growing list of fast-casual chains, including BurgerFi and Red Lobster, that have declared bankruptcy amid challenging business conditions. The company has also faced legal challenges, with lawsuits alleging racial and gender discrimination.
Other restaurant groups, including Rubio’s Restaurants, Melt Bar & Grilled, and Kuma’s Corner, also turned to bankruptcy relief during the same year.