The casual-dining chain has hired a law firm to prepare a filing, Bloomberg reported. The chain has been struggling for years.

Hooters has also been falling behind on its bills. In 2024, the company took about 4 times longer to pay its vendors than the average restaurant chain, according to data from credit report company Creditsafe. More than 20% of Hooters’ outstanding bills were over 90 days overdue last year, Creditsafe found.

In June, it closed a number of underperforming restaurants across the country, and had reportedly hired restructuring advisors to weigh its options.

The Atlanta-based chain has been struggling for years with sales declines and restaurant closures. From 2018 to 2023, U.S. systemwide sales at the Atlanta-based chain declined nearly 15%, and its domestic footprint shrunk by 12%, according to Technomic data.

Its problems reflect a broader struggle for the bar and grill segment, which has been hit hard by rising costs and a shift in consumer demand toward quick-service and fast-casual concepts.

If it files for bankruptcy, Hooters would join dozens of other restaurant companies to have done so over the past year. Those include Red Lobster, TGI Fridays, Buca di Beppo and Rubio’s Coastal Grill.

Hooters had not responded to a request for comment by publication time.

Source https://www.restaurantbusinessonline.com/financing/hooters-reportedly-preparing-bankruptcy-filing

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