It’s the tip of an period.
Hooters is making ready to file chapter within the coming months, in accordance with Bloomberg News.
The restaurant chain recognized for waitresses in cheeky orange shorts and low-cut white tank tops is reportedly combating money movement as a result of low foot site visitors.
Zero Hedge reported:
The Atlanta-based informal eating chain has enlisted the authorized muscle of Ropes & Grey to deal with its restructuring, whereas turnaround specialists at boutique advisory agency Accordion Companions are serving to type out the monetary mess, in accordance with sources who requested anonymity whereas discussing non-public dealings. The chapter course of is predicted to kick off throughout the subsequent two months.
Hooters’ collectors aren’t sitting idly by both. Some debtholders have tapped funding banking powerhouse Houlihan Lokey Inc. for recommendation, underscoring the severity of the chain’s monetary troubles.
Declining Gross sales and Mounting Debt
The corporate has been combating money movement points as clients more and more flock to different informal eating and fast-casual choices. Lately, a number of Hooters places have closed their doorways, a transparent signal that the once-popular model recognized for its wings and waitstaff is going through an existential disaster.
Including to the monetary woes, Hooters took on important debt in 2021, issuing about $300 million in asset-backed bonds. These bonds, structured as whole-business securitizations, used the corporate’s franchise charges and different belongings as collateral—a transfer frequent amongst restaurant chains seeking to leverage their model worth for fast money.
*HOOTERS IN TALKS TO PREPARE BANKRUPTCY FILING IN COMING MONTHS
noooo
— zerohedge (@zerohedge) February 21, 2025
I’m wondering why? pic.twitter.com/obAtoxC1Uk
— LogicalQueries (@JoshuaCalledMe) February 21, 2025
