Restaurant chain Hooters has filed for bankruptcy protection as it grapples with $376 million worth of debt.
The firm owns 151 restaurants - as well as 154 operated by franchisees - across America, serving the likes of chicken wings, burgers and seafood.
Despite the chain's financial situation, Hooters' CEO Sal Melilli has said the restaurants 'are here to stay' as they look switch up their approach.
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In a press release published yesterday (March 31), he added: "Today's announcement marks an important milestone in our efforts to reinforce Hooters' financial foundation and continue delivering the guest-obsessed hospitality experience and delicious food our customers and communities have come to expect."
Over the next four months, the business plans to sell over 100 company-owned restaurants to a group of two franchisees, who have pledged to make the brand more 'family-friendly'.
"I’ve seen firsthand the incredible value and opportunities our brand brings to life, and I look forward to continuing that momentum well into the future," Melilli continued.
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"I’m incredibly grateful to our valued customers, partners, and employees for their continued support."
Hooters will remain open to customers while the transition takes place, meanwhile its locations outside of the US will not be impacted.
It's thought the plan will be completed later this year, with the company planning to exit Chapter 11 bankruptcy in '90-120 days'.
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Chapter 11 bankruptcy is a process that allows businesses to restructure their debts while remaining open and functioning.
Last year, a spokesperson for Hooters told the Daily Mail: “Like many restaurants under pressure from current market conditions, Hooters has made the difficult decision to close a select number of underperforming stores.
“We look forward to continuing to serve our guests at home, on the go and at our restaurants here in the US and around the globe.”
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Speaking of the move, Neil Kiefer, CEO of Hooters Inc., added on behalf of the Buyer Group: “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.
“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.
"The foundation we’ve laid ensures the continued success of our brand - one that is driven by a relentless focus on delivering an exceptional experience each and every visit for our customers.”
Topics: Money, US News, Food and Drink, Business
Lucy Devine