Hooters files for Chapter 11 bankruptcy

HOOTERS announced on Monday that it had applied for bankruptcy of Chapter 11 – but this does not necessarily mean that it will return to work.

In a press release published on Monday night, the iconic restaurant series showed that it had entered into the RSA support agreement with “total support from the main stakeholders.” Chapter 11 allows bankruptcy protection for companies to restructure their debts while continuing to work.

The deal aims to “implement a sale transaction that facilitates continuing to operate business in light of new ownership.”

“Specifically, the company reached an agreement in principle with a group with high experience of current concessions (” Jupiter Group “) to gain and operate some of the company -owned HOOTERS sites,” HOOTERERS description.

Hooters monitor dozens of “weak” restaurants, optimistic about the future: reports

HOOTERS applied for bankruptcy of Chapter 11. (Raymond Buid / Getti Emaiz)

“The buyer group consists of two current HOOTERS concessions (including HOOTERS Inc., the original Hooters founders), who are currently owning and running more than 30 % of the local HOOTERS sites, including 14 more than 30 restaurants in size.”

The news comes more than a month after the outbreak of reports in February that HOOTERS was considering submitting bankruptcy. Bloomberg was martyred with debt, liquidity problems and less customers as major reasons for this step.

In a press release on Monday, the CEO of HOOTERS of Americana Sali promised that HOOTERS restaurants “here to stay.”

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HOOTERS CEO has pledged that the series is “here to survive.” (Brett Comer / Houston Cronic

“The announcement of today is an important milestone in our efforts to strengthen the HOOTERS Financial Corporation and continue to provide the hospitality experience of guests and delicious foods that our customers and societies expect,” said Mellyle’s statement.

“I have seen the amazing value and opportunities that our brand brings to life, and I look forward to continuing this momentum in the future.”

HOOTERS added that it will remain open to customer service, and restaurants will continue to work in the usual business method during Chapter 11 cases.

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HOOTERS cited debt, liquidity problems and less customers as major bankruptcy reasons, according to Bloomberg. (Paul J

The statement added: “As part of the company’s broader transformation and planning for the company, HOOTERS evaluates the company’s operational fingerprint as part of the financial restructuring process to put itself to invest its resources in its strongest assets to move forward.” “The company’s current concession operations, including its locations outside the United States, are not affected by the process of Chapter 11 and will continue to operate it through the company’s concession and licensing partners.”