Another Major Restaurant Chain Is Reportedly Preparing For Bankruptcy

Business for many national chain restaurants isn't as good as it used to be, and the economy is still tough for many restaurants. And now another long running chain restaurant is in danger of filing for bankruptcy according to multiple reports.

After closing numerous stores in Texas and throughout the United States in 2024, Hooters is reportedly preparing to file for bankruptcy.

According to the New York Post, Hooters, famous for its wings waitresses, has been seeing a steady foot traffic decline. Sources told Bloomberg News that no decision has been made yet, but the filing could happen in the next couple of months.

Hooters has about 300 locations across the nation and has reportedly faced financial strain due to competition, the economy, and traffic declines at its restaurants. According to the New York Post, Hooters has different options available to them, but industry experts believe they will emerge from bankruptcy with a more sustainable model.

As Hooters navigates its financial troubles, industry experts anticipate that it may attempt to negotiate a deal with creditors to restructure its obligations and potentially emerge from bankruptcy with a leaner, more financially sustainable model.

The coming months will be critical in determining whether the company can stabilize its operations and continue its long-standing presence in the restaurant industry, the experts said.

In 2024, Hooters closed many "underperforming restaurants including at least six in Texas. It remains to be seen whether Hooters will close any other locations in the coming months.