The complicated bankruptcy filing is designed to keep many locales open.
Toni McAllister, Patch Staff
|Updated Wed, Apr 2, 2025 at 8:59 am PT
CALIFORNIA — The Hooters restaurant chain — best known for its all-female serving staff outfitted in orange short shorts and low-cut tight "Hootie the Owl" tops — has filed for chapter 11 bankruptcy, the company announced on Monday.
California has seven Hooters locations, nearly all of them spread across Los Angeles, Orange, San Bernardino, and San Diego counties: Costa Mesa, Long Beach, Mission Valley, Ontario, San Marcos, and South Gate. The Bay Area has one location, in Rohnert Park.
The complicated bankruptcy filing is designed to keep many of the locales open.
"Our renowned Hooters restaurants are here to stay," Hooters Chief Executive Officer Sal Melilli said Monday.
According to the statement, the company reached an agreement "in principle" with a group of current Hooters franchisees to acquire and operate certain company-owned locations. This buyer group, which includes original Hooters founders, currently owns and operates over 30% of the domestic franchised Hooters locations, including 14 of the 30 highest volume restaurants.
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In conjunction with the proposed sale, Hooters filed voluntary petitions for chapter 11 in a Texas court. The company said it expects to emerge from chapter 11 bankruptcy protection in approximately 90 to 120 days.
It's unclear which company-owned Hooters locations are being sold, and the chapter 11 process does not impact existing franchise locations, the company said.
Hooters restaurants currently remain open and will continue to operate in "a business-as-usual manner" during chapter 11 proceedings. However, the company said that, moving forward, it is "evaluating" its operational footprint and will invest resources in its "strongest assets."
Last summer, dozens of Hooters locations across the nation permanently closed due to "pressure from market conditions," according to a company statement at the time.
On behalf of the franchisee group that is acquiring certain company-owned locations, Neil Kiefer said, "As we look toward the future, we are committed to restoring the Hooters brand back to its roots and simplifying ... operations by adopting a pure franchise model that will maximize the potential for sustainable, long-term growth."
To answer customers' questions about the path ahead for Hooters, the company launched an "Our Future" web portal.
In addition to its sexy "Hooters Girls" servers — arguably the casual eatery's main draw — the restaurant is known for a menu that includes hamburgers, sandwiches, steaks, seafood entrees, appetizers, and chicken wings. Most Hooters locations hold alcoholic beverage licenses. Hooters T-shirts, sweatshirts, and various souvenirs and curios are also sold at most of the company's restaurants.
Hooters was incorporated on April 1, 1983, by six businessmen, and the first restaurant opened on October 4, 1983, in Clearwater, Florida.
The company now has locations around the globe and is headquartered in Atlanta, Georgia.
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