Hooters may be filing for bankruptcy (Photo by Stan Grossfeld/The Boston Globe via Getty Images)

Boston Globe/Boston Globe via Getty Images

Another dining chain may be headed toward bankruptcy after a slew of restaurant companies filed for bankruptcy in the past year. 

Hooters of America, which despite recent financial struggles still has dozens of Texas locations, is in talks to file for bankruptcy in the coming months, Bloomberg reported.

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The process would likely begin in the next two months, according to the report, which states the company is working with law firm Ropes & Gray to prepare a filing. However, the plans are not final, according to Bloomberg. 

The restaurant chain closed dozens of locations across the country in June 2024, with at least eight closures in Texas alone. About 40 locations nationwide that were deemed “underperforming” were closed. 

The closures at the time came as unexpected news to some staff, Chron reported at the time. Customers’ reactions were less than dismayed as many posted on social media at the time that the service at certain locations was poor. 

Amid the closures, Hooters has struggled to maintain foot traffic and has seen a decline in demand, Bloomberg reported. 

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The restaurant, which is known for its revealing uniform and signature chicken wings, opened in 1983 and has over 420 locations across 29 countries. 

This theme restaurant is known to draw and at times inspire controversy, such as a fifth grader being asked to remove his Hooters-themed mask in 2020 as a teacher deemed it not appropriate for school.

Restaurants including Red Lobster and Buca di Beppo were among the several dining chains that filed for bankruptcy in 2024. Rising costs and lower traffic contributed to the restaurant industry’s flurry of bankruptcies in the past year. 

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Feb 22, 2025