Hooters breaks down.
The American chain of restaurants, known for the chicken wings and its Hoots Girls sketches, Wait-Staff, has applied for bankruptcy. Hoa’s Restaurant Group filed a proposal to protect Chapter 11 on Monday at the North Texas Bankruptcy Court in Dallas.
This is the largest chain of Legacy Restaurant, which is facing financial problems against the background of high food and labor prices, changing customer tastes and increasing competition from larger daily chains like Shake Shack.
Red Omar, TGI Friday and BUCA DI Beppo have applied for bankruptcy last year while the TEX-Mex chain at the border filed a request for bankruptcy last month.
According to the Hooters 100 Bankruptcy Plan, the company owned by the company will be sold to a group of Hooters franchisees. Franchisees, which include Hooters founders, are currently operating 14 of the 30 restaurants with the largest volume of Hooters in the United States, the company said.
“For many years, the Hooters brand has been owned by private capital companies and other HOOTS History Groups,” says Neil Kiffer, CEO of Franchise Group Hootters Inc. an emblematic brand to its historical success. “
The buyers group said on Tuesday that he would not comment on the financial conditions of the transaction.
Hooters said franchisees or licensing partners will continue to manage all existing places, including those outside the United States, has approximately 305 Hooters restaurants in 29 states and 17 countries, according to court documents.
The Hoots, based in Atlanta, Georgia, was founded in Clearwater, Florida, in 1983 by six businessmen without experience in food service that claims to want to manage a restaurant from which they cannot be expelled.
But his business strategy has been challenged over the years, including lawsuits to hire only Hooters Girls to serve customers. In 2017, the company tried to open a restaurant that did not include servers in narrow peaks as a test for a different approach to its original concept.
Last year, Hooters agreed to pay $ 250,000 to settle a race for race and color discrimination filed by the US Equal Opportunity Commission in the United States. According to the court case, Hooters in North Carolina released 43 employees during the Covid pandemic, but recalled mostly white employees and black employees with a lighter skin tones after he began to revise workers.
The company is also forced to scale as its financial woes are installed. In 2019, Hotel Hotel Casino Hotel near the lane in Las Vegas was sold to an Indian hotel company and rebranded as a hotel and casino OYO. Last year, the company closed about 40 lower results in the United States.
Hutters sponsored the No. 9 NASCAR car, driven by Chase Elliott since 2017, but last year Hendrick Motorsports ended its relationship with its long -time sponsor because it does not fulfill its financial engagements.
Kurtbach reported from Bangkok. Darbin reported from Detroit.
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