Major Closure of Hooters Locations Continues After Bankruptcy Filing
ICARO Media Group
### Hooters Closes Dozens of Locations Following Bankruptcy Filing
Hooters, the well-known chicken wing chain, has suddenly shut down numerous locations just months after declaring bankruptcy and asserting its intent to remain operational. A spokesperson for the company told CNN that the decision to close specific company-owned locations came after a thorough evaluation aimed at positioning the company for future success.
Although an official list of closures was not provided, local reports indicate that approximately 30 locations in states including Florida, Georgia, Michigan, North Carolina, South Carolina, Tennessee, and Texas have been affected. Despite these closures, Hooters emphasized its commitment to staying in business, noting that by refining its operations, the company will secure its long-term objectives under a completely franchise-run model.
Initially established 42 years ago, Hooters is characterized by its distinctive orange-uniformed, all-female waitstaff. The chain filed for bankruptcy in March, and is currently in the process of selling its 100 company-owned restaurants to franchise groups operating in Tampa, Florida, and Chicago areas.
While Hooters had already hinted at a potential reduction of its company-owned locations, many industry observers were not entirely taken by surprise by the closures. The chain had previously shut down numerous locations before filing for bankruptcy earlier this year.
The closures at Hooters come on the heels of similar actions by Bahama Breeze, a part of Darden Restaurants, which has recently closed 15 locations. These restaurants, traditionally serving lower and middle-income families, are facing challenges as consumers' disposable income dwindles due to inflation.
Maeve Webster, president of Menu Matters, a consulting firm, explained that shutting down underperforming locations could be more beneficial for a chain rather than trying to revive them. This strategy can help avoid the risk of undermining the entire brand. According to Webster, streamlining the menu by eliminating items with low sales can improve the overall quality and consistency of the offerings.
Similarly, TGI Fridays, which is set to exit bankruptcy this summer, has also shut down various locations as it navigates through Chapter 11. The chain recently revamped the menu at its remaining 85 U.S. locations in hopes of reigniting consumer interest.