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Restaurant Chain that Recently Filed for Bankruptcy Closes More than 30 Locations in Multiple States

  • Hooters, a 42-year-old restaurant chain known for its orange-clad wait staff, filed for Chapter 11 bankruptcy in March 2025 and closed over 30 company-owned locations on June 4 across more than a dozen states.
  • The closures followed Hooters' April plan to sell 100 company-owned restaurants to franchise groups amid declining consumer sentiment and shrinking disposable income in early 2024 and 2025.
  • CEO Neil Kiefer stated in March that returning the brand to highly experienced franchisees would position Hooters for future success, while the company called the June 4 closures a "difficult decision" necessary for long-term stability.
  • Hooters currently owns 151 company-operated locations and 154 franchised stores, with the sale supported by the founders to reduce $376 million debt and enable a streamlined franchise model, assuring the brand will continue operating.
  • Although Hooters has begun closing several locations this month, the company assures both customers and employees that it remains committed to its future, aiming to emerge from this process financially stronger and with more efficient operations.
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Chain Store Age broke the news in on Thursday, June 5, 2025.
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