Hooters restaurants facing uncertainty due to rising financial problems

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There’s a chance the Hooters restaurant chain will go, uh, belly up if the company doesn’t find a way to pay down some of the $300 million US debt it has racked up.

According to Bloomberg, Hooters of America is in talks with Accordion Partners and law firm Ropes & Gray in an effort to find a way out of their financial problems and mounting debt. But there are fears the popular but controversial eatery, known for it’s scantily clad waitresses and chicken wings, could be forced to close more locations.

Hooters closed roughly 40 restaurants that were underperforming earlier this year in the hopes of cutting debt, according to the UK’s Daily Mail. At the time, Hooters, which now has about 300 restaurants globally, cited “pressure from current market conditions,” and said it would continue to open new restaurants.

“Like many restaurants under pressure from current market conditions, Hooters has made the difficult decision to close a select number of underperforming stores,” a spokesperson told DailyMail.com. “We look forward to continuing to serve our guests at home, on the go and at our restaurants here in the U.S. and around the globe.”

Hooters was bought by Nord Bay Capital and TriArtisan Capital Advisors in 2019 and has about $300 million in asset-backed bonds that must be repaid, according to Bloomberg.

There is some concern Hooters, which celebrated its 40th birthday in 2023, will file for Chapter 11 bankruptcy, allowing it to restructure and receive protection from creditors. Red Lobster recently emerged from Chapter 11 after closing 100 restaurants to cut costs.

According to the Hooters website, the company has four locations in Canada, including one each in Toronto and Niagara Falls. The others are in Winnipeg and Saskatoon.