U.S.-based restaurant chain Hooters, which is known for its chicken wings and all-female serving staff wearing revealing outfits, has officially filed for bankruptcy protection, and here’s what that means for the chain’s only Toronto location.
On Monday, Hooters of America (HOA) Restaurant Group filed the motion for Chapter 11 protection in the North Texas Bankruptcy Court in Dallas.
The company has been facing mounting financial challenges, and as a result, announced that it has entered into a restructuring support agreement to effectuate a sale transaction that will allow for the continued operation of the business under new ownership.
The company has reached an agreement with a group of current franchisees, called the Buyer Group, to acquire and operate certain company-owned Hooters locations. The group is comprised of two existing Hooters franchisees, who collectively currently own and operate over 30 per cent of the domestic franchised Hooters locations, including nearly half of the 30 highest volume restaurants.
The chain currently operates four Hooters restaurants in Canada, including two in Ontario, one in Saskatoon, and one in Winnipeg. The last Hooters standing in Toronto is located at 280 Adelaide St. W., and you won’t have to worry about it going anywhere anytime soon.
“Our renowned Hooters restaurants are here to stay. 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,” said Sal Melilli, Chief Executive Officer of Hooters of America.
Hooters restaurants will remain open to serve customers and will operate in a business-as-usual manner during their Chapter 11 cases.
“Hooters’ current franchise operations, including its locations outside the U.S., are not impacted by the chapter 11 process and will continue to be operated by the Company’s franchise and license partners. To be clear, operations will continue as usual,” the company told blogTO in a statement.
Hooters says that upon completion of the Chapter 11 process, all Hooters locations will be franchisee-owned, and it expects to emerge from bankruptcy in anywhere from three to four months.
