ALL THE BREAST

Hooters Goes Bust after Racking Up $300 Million in Debt

The chain is preparing to go into Chapter 11.

Bad news for Americans who love a meal with a side of cleavage—Hooters is going bankrupt. The popular restaurant chain, largely known for its servers’ skimpy outfits, is $300 million in debt. Almost 300 locations are scattered nationwide, historically enticing casual diners and drinkers with cheap beers and American comfort food. It isn’t the only chain prepping for its downfall—Red Lobster also filed for bankruptcy last summer. Both have blamed rising rent and food prices. Plus, they say, people are eating out less and ordering in more. The owl-themed spot first opened in Clearwater, Florida in 1983. For over four decades, it has greeted millions of Americans. But its loyal fans just aren’t cutting it anymore. Hooters is readying itself to restructure through Chapter 11—a policy which allows them to negotiate leases and loans in order to reorganize. Hooter-holics shouldn’t lose hope yet. Chapter 11 worked for Red Lobster, which emerged triumphant after closing 100 restaurants and ending their debts. The private equity-owned restaurant already shut down 40 of its “underperforming” locations in June to try and stay above water. Nationwide, dozens of chains are facing the same fate: from big players like Applebee’s and TGI Fridays to small, locally-owned businesses.