Hooters of America, LLC

Who owns Hooters?
Following the October 31, 2025 bankruptcy restructuring, Hooters of America operates as a pure franchise model. The Buyer Group, consisting of Hooters Inc. (the original founder entity) and Hoot Owl Restaurants, acquired 111 company-owned restaurants and operates 140 of the 198 domestic locations. Hooters Brand Management handles franchise support operations.

Did Hooters go bankrupt?
Yes, Hooters of America filed for Chapter 11 bankruptcy protection on March 31, 2025, citing $376 million in debt, rising costs, and declining sales. The bankruptcy plan was approved on September 30, 2025, and the sale to The Buyer Group was completed on October 31, 2025. The company eliminated over $300 million in debt through the restructuring.

When was Hooters founded?
Hooters was founded on April 1, 1983, in Clearwater, Florida, by six investors: Gil DiGiannantonio, Dennis Johnson, Ed Droste, William Ranieri, Ken Wimmer, and Don Hooten.

How many Hooters locations are there?
Post-restructuring, Hooters operates approximately 198 domestic and 60 international locations, totaling approximately 258 restaurants. This is down from a peak of over 400 locations. The company closed 48 underperforming locations since early 2024, including approximately 30 in June 2025.

What is Hoots?
Hoots is a fast-casual spinoff concept launched by Hooters in 2021, featuring a smaller restaurant format without the Hooters Girls concept. Hoots focuses on chicken wings and tenders in a more modern, gender-neutral environment.

What is Hooters' revenue?
Hooters generates approximately $700 million in systemwide sales across its 258 locations. Prior to bankruptcy, the company-owned restaurants generated approximately $359 million in annual revenue. The company is privately held and does not publicly disclose detailed financial information.

Hooters was founded on April 1, 1983, in Clearwater, Florida, by six investors: Gil DiGiannantonio, Dennis Johnson, Ed Droste, William Ranieri, Ken Wimmer, and Don Hooten. The first location opened as a casual dining restaurant featuring chicken wings, seafood, and beer, with a distinctive brand identity centered on its Hooters Girls waitstaff.

The restaurant quickly gained popularity in Florida and attracted the attention of Robert Brooks, a Georgia businessman, who acquired the rights to the Hooters concept and began expanding it nationally through franchising. Brooks built Hooters into a nationally recognized casual dining chain through the 1980s and 1990s.

Hooters went public in 1989 but was taken private again in 1993 when Robert Brooks and investors acquired the company. Under Brooks' leadership, Hooters expanded internationally, establishing locations in Canada, Europe, Asia, and other regions.

Robert Brooks died in 2006, and his son Coby Brooks took over as CEO. The company faced challenges in the late 2000s and 2010s as casual dining traffic declined and competition increased. Hooters closed numerous locations and underwent restructuring.

In 2011, a group of private equity investors acquired Hooters of America. The company continued to face challenges with declining same-store sales and changing consumer preferences.

In 2019, Nord Bay Capital and TriArtisan Capital Advisors acquired Hooters of America, LLC. The company closed an estimated 40 underperforming restaurants in 2024, followed by approximately 30 more in June 2025. In total, 48 locations were closed since early 2024 before the bankruptcy filing.

On March 31, 2025, Hooters of America filed for Chapter 11 bankruptcy protection, citing $376 million in debt, rising costs, declining sales, and competitive pressures in casual dining. The company secured $40 million in debtor-in-possession financing to maintain operations during restructuring. The bankruptcy plan, which settled a dispute with creditor Lags Equipment LLC over royalty payments, was approved by the U.S. Bankruptcy Court for the Northern District of Texas on September 30, 2025.

On October 31, 2025, The Buyer Group, consisting of Hooters Inc. (the original founder entity operating 22 restaurants) and Hoot Owl Restaurants, completed the acquisition of 111 company-owned restaurants. The new owners plan to revitalize the acquired locations with upgrades, equipment enhancements, a streamlined menu with better ingredients, and enhanced customer service. Post-restructuring, Hooters operates approximately 198 domestic and 60 international locations with approximately $700 million in systemwide sales.

Hooters has been a subject of ongoing controversy regarding its brand identity and the Hooters Girls concept. Critics have argued that the brand's emphasis on the appearance of its female waitstaff is exploitative and inappropriate. Hooters has defended the concept as entertainment and maintained it as a core part of the brand.

The company has faced employment discrimination lawsuits over the years related to its hiring practices for Hooters Girls, which require female applicants to meet certain appearance standards.

The March 2025 bankruptcy filing generated significant media coverage and raised questions about the long-term viability of the brand's concept. The bankruptcy also involved a legal dispute with creditor Lags Equipment LLC, which had maintained a royalty interest agreement for over three decades, receiving 3% of revenue from certain locations. The dispute was settled with a $1.6 million payment.