By james art 
The company and its branches filed a filing of Chapter 11 on Monday to the US bankruptcy court in the northern Texas district and stated that its goal is to appear from bankruptcy “for approximately 90-120 days”.
It says there is a “almost unanimous” support from key stakeholders and seeks approval of $ 40 million in funding from existing lenders to finance operations during the bankruptcy process.
Hooters of America said there was an agreement to sell some places owned by the company of a group of current franchisees, including the original founder of Hooters, Hooters Inc.
Hooters Inc and other franchisee, Hoot Owl restaurants, already own and operate more than 30% of Hooters’ home -made franchises and have announced on Monday that they have an agreement to acquire more than 100 Hooters restaurants from Hooters of America.
Hooters of America said his restaurants “remain open to customer service and will continue to work in the business in the usual way during their cases of Chapter 11.”
“Our famous Hooters restaurants are here to stay,” said Hooters of America CEO Sal Melilli in a written statement.
Credit: TNS
Credit: TNS
However, the company may strive to reduce its operations through the restructuring process of Chapter 11, which often allows companies to extinguish debt and get out of leasing and other contracts.
In a press release, Hooters of America said it “evaluates the company’s operational footprint as part of the financial restructuring process to position itself to invest its resources in its strongest assets moving forward.”
Hooters has been based on Atlanta for decades. The first Hooters opened in Clearwater, Florida, in 1983 the following year a group of investors in Atlanta bought expansion and franchise rights. Over the years, it has grown to more than 420 seats in 29 countries.
Hooters of America was acquired by Nord Bay Capital and Trirtisan Capital Advisors in 2019 by other private capital companies.
The company opened Hoots Wings from Hooters Counter-Service places a few years ago in Atlanta and other cities, but these places are no longer open, according to the Hoots Wings website.
Hooters Inc. Executive Director Neil Kiffer said in a written statement: “For many years, the Hooters brand has been owned by private capital companies and other groups without history or experience with the Hooters brand.”
Kiefer added that with the Hooters brand, the Hooters brand will be in the hands of highly experienced Hooters franchisors and said the buyers’ group was “committed to restoring the Hoots brand back in their roots” and simplifying operations through a “pure franchising model”.
The buyers’ group said that the management company it owns will provide franchising support with a national advertising fund, central purchases, franchise development and other features.
The plans are from the group of buyers to own and operate about 70% of the interior of Hooters after acquisitions and for all Hooters places to be owned by franchisees at the end of the Chapter 11 process.