Hooters abruptly shuttered more than 30 company-owned restaurants across multiple states on June 4, just three months after the iconic sports bar chain filed for bankruptcy protection while promising customers it would remain operational. The closures, which the company called a "difficult decision," mark a reversal from the chain's earlier assurances that no restaurants would close during its restructuring process.
The shuttered locations span states including Florida, Georgia, Michigan, North Carolina, South Carolina, Tennessee and Texas, affecting cities such as Orlando, Nashville, Charlotte and Detroit. Among the closures are two South Carolina restaurants in Columbia and Rock Hill.
Hooters of America filed for Chapter 11 bankruptcy protection on March 31, citing $376 million in debt and seeking to address what it described as "inflationary pressures, industry headwinds, and an unsustainable debt structure"12. At the time, CEO Sal Melilli emphasized that restaurants would "remain open to serve customers and will continue to operate in a business-as-usual manner"3.
The company initially stated it expected to exit bankruptcy within 90 to 120 days and secured $35 million in financing to fund operations during the restructuring14. However, court documents revealed the company was already "evaluating the Company's operations footprint," suggesting potential closures were under consideration5.
The closures are part of Hooters' broader strategy to transition from a hybrid business model to what it calls a "pure franchise business model"12. The company plans to sell all 151 of its corporate-owned restaurants to a buyer group that includes two existing franchisees backed by the chain's original founders32.
"Hooters will be well-positioned to continue our iconic legacy under a pure franchise business model," the company said in a statement to USA Today4. "We are committed to supporting our impacted team members throughout this process and are incredibly grateful to our valued customers for their loyalty and dedication to the Hooters brand."
The chain has faced mounting challenges including rising food and labor costs, declining customer traffic, and multiple lawsuits alleging racial and gender discrimination12. The company had already closed 48 underperforming stores since early 2024 prior to filing bankruptcy3.
Founded in 1983 in Clearwater Beach, Florida, Hooters operates approximately 420 restaurants globally, though the company expects to operate around 200 U.S. locations and 60 internationally once restructuring is complete4.
