A bankruptcy filing could potentially be on the menu for Hooters of America in the near future.
The company is looking at possibly filing for bankruptcy as a means of restructuring the restaurant chain and tackling its debt, Bloomberg reported Friday, citing unnamed sources.
Ropes & Gray has reportedly been brought on board for preparations for that potential move and, according to the outlet, they could file court papers on Hooters’ behalf in the coming two months to kick off the restructuring if the restaurant chain decides to take that step.
The company’s consideration of entering bankruptcy comes as it has been contending with debt, liquidity problems and less people coming into its restaurants, Bloomberg reported.
HOOTERS SHUTTERS DOZENS OF ‘UNDERPERFORMING’ RESTAURANTS, OPTIMISTIC FOR FUTURE: REPORTS
There are over 410 Hooters locations globally, per the restaurant chain’s website.
Hooters would mark the latest struggling restaurant chain to enter bankruptcy should it ultimately choose to pursue that course of action. However, nothing has been finalized, per Bloomberg.
FOX Business reached out to Hooters for comment.
Reports of Hooters looking at possible bankruptcy prompted reactions on social media, including NBA player Devin Booker and golf influencer Paige Spiranac, Fox News Digital reported. Booker, for example, wrote, “Plz don’t go @Hooters.”
The company has belonged to Nord Bay Capital and TriArtisan Capital Advisors for nearly six years. They purchased it through a deal with H.I.G. Capital, Chanticleer Holdings and others, who kept a stake in the chain post-transaction, according to a press release from the time.
Several years ago, Hooters conducted a sale of asset-backed bonds worth $300 million, Bloomberg reported.
The restaurant chain has been in business since the 80s. Its founders set up its first-ever location in Clearwater, Florida.
Gil DiGiannantonio, Lynn Stewart, Ken Wimmer, Billy Ranieri, Dennis Johnson and Ed Droste were among its six founders, according to the Tampa Bay Times.
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