Atlanta, Georgia, December 14, 2025
Hooters of America has announced the closure of over 30 company-owned locations following a Chapter 11 bankruptcy filing aimed at restructuring operations. This move is part of Hooters’ strategy to shift towards a franchise-only model to enhance profitability and overcome financial challenges. The closures affect restaurants across at least 12 states, but many independently owned Hooters locations remain operational and financially stable. The company has secured $35 million in financing to support the transition and operations of remaining locations.
Hooters Closes Over 30 Locations Amid Bankruptcy Restructuring
Aiming for Franchise-Only Model to Streamline Operations and Revive Brand
Atlanta, Georgia – Hooters of America, the restaurant chain famous for its chicken wings and distinctive server uniforms, has made headlines by closing over 30 company-owned locations across multiple states. This significant decision follows the company’s Chapter 11 bankruptcy filing in March 2025, initiated to restructure its operations and address pressing financial challenges. Spanning at least 12 states, including North Carolina, the closures highlight the transformations underway in the restaurant industry.
The closures come as part of Hooters’ strategy to unburden itself from debt and operational limitations by transitioning to a franchise-only business model. By selling all 151 of its corporate-owned restaurants to a group of existing franchisees, the company aims to enhance profitability and sustainability while securing its brand’s legacy. Though some locations will be shuttered, it’s noteworthy that many independently owned Hooters establishments continue to thrive despite the challenges faced by their corporate counterpart.
Impacts of the Closures
The decision to close company-owned locations has affected a wide range of states, including returning to North Carolina diners who may wonder how local offerings could change. While company reports indicate tough decisions have been made, the franchise model could potentially benefit local economies by allowing more community-focused management and entrepreneurship to flourish in each location.
Independently Owned Locations Remain Operational
Not all icebergs have sunk ships, and indeed many independently owned Hooters franchises remain operational and financially secure. For example, the Gulfport, Mississippi location, successfully serving customers since 2003, showcases how independent management can navigate economic challenges better than corporate entities burdened by overarching debt and regulatory frameworks. This reflects a broader trend where local franchises may be more adept at responding to market demands without heavy administrative overhead.
Financial Support for Transition
As part of the bankruptcy proceedings, Hooters has managed to secure around $35 million in financing aimed at facilitating this restructuring process. This funding is crucial not just for shuttering locations but also for maintaining and strengthening the viability of the remaining establishments, showcasing a proactive approach to securing the brand’s future.
Restaurant Industry Trends
The move to a franchise-only model aligns Hooters with a widely observed trend within the restaurant industry. Companies increasingly reevaluate their operational structures to boost profitability and adapt to the challenging market landscape. Such decisions often reflect the resilience and innovative spirit of small businesses in the face of shifting consumer preferences and economic landscapes.
Current Market Performance
In the wake of these changes, associated companies like Herc Holdings Inc., tied to Hooters, remain active in the financial markets. As of December 13, 2025, Herc Holdings stands at $154.49 USD, indicating a stable position following the corporate restructuring endeavors.
Conclusion
The recent closures of Hooters’ company-owned locations signal a pivotal moment in the company’s journey towards revitalization. While the transition to a franchise-only model offers bright prospects for encouraging local entrepreneurship and community involvement, it also serves as a reminder of the ever-changing dynamics within the restaurant industry. By supporting independently owned restaurants and engaging in local business endeavors, patrons can contribute to a more resilient and vibrant dining landscape in North Carolina.
Community members and consumers are encouraged to support their local restaurants and stay engaged with the ongoing transformations shaping Charlotte’s economic future.
- What is Hooters’ recent business decision?
- Hooters of America has closed over 30 company-owned locations across multiple states as part of a strategy to transition to a franchise-only business model.
- Which states were affected by the closures?
- The closures impacted restaurants in at least 12 states, including Florida, Georgia, Michigan, North Carolina, South Carolina, Tennessee, and Texas.
- Are independently owned Hooters locations still operating?
- Yes, many independently owned Hooters locations remain operational. For example, the Gulfport, Mississippi franchise continues to serve customers and is financially secure.
- What is Hooters’ plan following the bankruptcy filing?
- Following the Chapter 11 bankruptcy filing, Hooters plans to sell all 151 of its corporate-owned restaurants to a group of current franchisees, aiming to restructure its operations and address financial challenges.
- How is Hooters supporting its remaining locations?
- Hooters has secured approximately $35 million in financing to support the transition and ensure the continuity of its remaining locations.
| Key Feature | Details |
|---|---|
| Number of Closures | Over 30 company-owned Hooters locations closed across multiple states. |
| States Affected | At least 12 states, including Florida, Georgia, Michigan, North Carolina, South Carolina, Tennessee, and Texas. |
| Independently Owned Locations | Many remain operational and financially secure. |
| Bankruptcy Filing | Chapter 11 bankruptcy filed in March 2025 to restructure operations and address financial challenges. |
| Support for Remaining Locations | Approximately $35 million in financing secured to support the transition and ensure continuity. |
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