19 hours Ago By [email protected] (Bobby Lewis)
Restaurants come and go as economies and customer habits change, and the controversial chain Hooters is trending toward going. According to a report by Bloomberg , Hooters is reportedly in talks with a law firm to potentially file for bankruptcy within the next two months. The goal of the bankruptcy filing would be to restructure the business and better manage its debt load.
Like many others in the food and beverage industry, Hooters has long been plagued by declining foot traffic and restaurant sales. According to data compiled by Bloomberg, the chain sold approximately $300 million in asset-backed securities in 2021 — a move typically used to raise capital and improve cash flow by monetizing physical assets. Hooters also closed an unspecified number of locations in 2024, leaving it without about 300 stores worldwide — 18% fewer than in 2018.
In retrospect, Hooters may have been in trouble for a while. In 2018, a Japanese store rented Hooters tables as workspace when the restaurant wasn't busy. Hooters also spiked 2022 rumors that it would shut down and launch a rebrand .
Perhaps the biggest sign of trouble came this past summer, when Hooters lost its longtime NASCAR team sponsorship over its failure to meet contractual obligations, resulting in a $1.7 million lawsuit over unpaid sponsorship fees. Hooters' history of controversy, explained Hooters has long drawn ire for the working conditions of its servers, who are mostly young women officially known as "Hooters Girls.
" The servers are selected in part for their attractiveness, and expected to maintain a glamorous appearance. Their signature uniforms — orange short shorts and tight white tank tops that say "Hooters" on the chest — made Hooters the original so-called "breastaurant." There are a lot of things you may not know about Hooters , but many of them reinforce accusations of misogyny.
Although the restaurant is not directly named after breasts, it is named after a Steve Martin joke about breasts. The first woman to don the title of "Hooters Girl" took the job immediately after winning a bikini contest, settling a bet one of the founders made with their friends. Following all of this, Hooters has long been a hotbed for all sorts of lawsuits, including sexual harassment, weight harassment, racial discrimination, and sexually hostile environments.
In 2024, Hooters settled a federal lawsuit from the Equal Opportunity Employment Commission about race- and color-based discrimination in one store. According to Bloomberg, representatives from Hooters and its law firm declined to comment on the recent bankruptcy discussion..
