Hooters Of America Files For Chapter 11 Bankruptcy Protection

(RTTNews) - Hooters of America LLC and certain of its affiliates filed voluntary petitions for chapter 11 cases in the United States Bankruptcy Court for the Northern District of Texas. The Company expects to move through this process swiftly, with the goal of emerging from chapter 11 in approximately 90-120 days, the company said.

Hooters of America noted that it has reached an agreement in principle with a highly experienced group of current franchisees to acquire and operate certain Company-owned Hooters locations.

The Buyer Group is comprised of two existing Hooters franchisees (including Hooters Inc., the original Hooters founders), who collectively currently own and operate over 30% of the domestic franchised Hooters locations, including 14 of the 30 highest volume restaurants.

Upon completion of the chapter 11 process, all Hooters locations will be franchisee-owned, Hooters of America said.