Hooters of America has entered into a Restructuring Support Agreement (RSA) as part of a plan to sell its company-owned restaurants and transition to a fully franchised business model. Ropes & Gray, SOLIC Capital Advisors, Accordion Partners, and C Street Advisory Group are advising the company. The buyer group—composed of two existing franchisees, including Hooters Inc., the original founders of the brand—is represented by North Point Mergers & Acquisitions and Morrison & Foerster.
The sale, backed by near-unanimous support from key stakeholders, will see the buyer group acquire and operate a portion of the company’s corporate-owned locations. The group already controls over 30% of Hooters' franchised domestic restaurants and operates nearly half of the top-performing units, giving them significant insight into the brand’s operations and customer base.
To execute the transaction and restructure its balance sheet, Hooters has filed for Chapter 11 protection in the U.S. Bankruptcy Court for the Northern District of Texas. The company is seeking approval for $40 million in DIP financing—$35 million of which would be new capital—to maintain operations during the proceedings. Hooters expects to emerge from bankruptcy within 90 to 120 days.
Under the proposed structure, the company-owned locations will be sold to the buyer group, and Hooters will operate entirely as a franchised system going forward. Existing franchise and international locations are not part of the Chapter 11 process and will continue normal operations.
The company is also reviewing its operational footprint as part of the broader restructuring, but all restaurants remain open during the transition. Leadership has framed the move as an effort to stabilize the business and position it for long-term viability under a simplified ownership model.
“With over 30 years of hands-on experience across the Hooters ecosystem, we have a profound understanding of our customers and what it takes to not only meet, but consistently exceed their expectations,” said Neil Kiefer, CEO of Hooters Inc., on behalf of the Buyer Group. “As we look toward the future, we are committed to restoring the Hooters brand back to its roots and simplifying HOA’s operations by adopting a pure franchise model that will maximize the potential for sustainable, long-term growth.
Published March 31, 2025.
