Hooters Files for Bankruptcy Amid Mounting Debts and Restaurant Closures

Hooters, the Atlanta-based chain famous for its chicken wings and servers in revealing uniforms, has filed for Chapter 11 bankruptcy in a North Texas court, citing debts of $376 million and the recent closure of 44 locations. Founders of parent company HMC Hospitality Group have joined forces with investors to reacquire many of the brand’s highest-grossing outlets from a private equity firm, with ownership totaling around one-third of all Hooters restaurants. Despite the filing, company FAQs assure customers that Hooters is not shutting down and will keep its signature offerings intact.

According to CEO Nick Kiefer, Hooters plans to transition toward a more “family-friendly” atmosphere once the bankruptcy process is complete, franchising the remaining stores in the process. Industry analysts link Hooters’ financial troubles to issues many casual dining chains face, including inflation and supply chain disruptions that have driven up menu prices. Lower-cost competitors like Chili’s have seen sales climb by cutting prices, luring budget-conscious diners away from pricier options.

Meanwhile, Dallas-based Twin Peaks—often regarded as Hooters’ direct rival in the “breastaurant” category—has highlighted strong performance with plans for continued growth. The brand opened an IPO in January 2025 and is set to surpass $1 billion in sales over the next five years. Despite leadership changes slated for April, Twin Peaks remains optimistic about its expanding footprint, signing franchise agreements to launch 24 new locations in markets nationwide.