Hooters files for bankruptcy protection
(NBC, KYMA/KECY) - Restaurant chain Hooters is filing for bankruptcy protection.
The company filed for bankruptcy in Texas Monday, seeking to address its $376 million debt by selling all of its company-owned restaurants to a franchise group backed by the company's founders.
In recent years, Hooters has struggled due to inflation, the high costs of labor and food, and declining spending by cash-strapped American consumers.
The company said it plans to exit Chapter 11 bankruptcy in "approximately 90-120 days."
Hooters said it will continue to operate its business as usual, although it said it is evaluating the company's "operational footprint" for its company-owned locations.
This means it may end up closing some locations during its bankruptcy process.
