Hooters of America, LLC, the original wing joint and globally recognized iconic brand, has entered into a Restructuring Support Agreement (RSA) to facilitate a sale transaction that will continue its operations under new ownership. The agreement was reached with a highly experienced group of current franchisees, including two existing Hooters franchisees who own and operate over 30% of the domestic franchised Hooters locations.
Key stakeholders have shown widespread support for the capital structure, which will allow the company to emerge from chapter 11 in approximately 90-120 days. The company has filed voluntary petitions for chapter 11 cases in the US Bankruptcy Court for the Northern District of Texas and is seeking approval of $40 million in debtor-in-possession financing.
Despite the restructuring process, Hooters restaurants will remain open to serve customers and operate in a business-as-usual manner during its chapter 11 cases. The company’s operational footprint outside the US will not be impacted by the process.
The Buyer Group, led by Neil Kiefer and Sal Melilli, aims to restore the Hooters brand back to its roots by adopting a pure franchise model that will drive sustainable, long-term growth. The group has over 30 years of experience in the Hooters ecosystem and is committed to delivering an exceptional experience for customers.
Hooters has launched a dedicated website for stakeholders to get information about the chapter 11 cases at www.Hooters.com/our-future/.
Source: https://www.hooters.com/about/news/hooters-of-america-takes-strategic-action-to-continue-its-iconic-legacy