The Hooters restaurant chain is in talks with its creditors about a possible restructuring plan through a bankruptcy process in the coming months. It has been reported that the company has been closing restaurants and facing liquidity issues, raising concerns about its future.
In response to these rumors, Hooters Mexico issued a statement assuring that the alleged bankruptcy process in the United States would not impact its operations in Mexico, as the brand management in the country is conducted independently under a franchise agreement with Grupo Dival, a Mexican company.
Hooters is known for its distinctive logo of a wide-eyed owl and its waitresses who wear short uniforms. It was recently revealed that the parent company, Hooters of America, is working with lawyers to prepare for possible restructuring or bankruptcy measures in the coming months.
The restaurant industry has faced significant pressures due to rising menu prices, inflation, supply chain disruptions, and increasing interest expenses. This has led several restaurant chains to seek bankruptcy protection, with Hooters being one of the latest to consider this option.
According to reports, Hooters sold asset-backed bonds totaling $300 million in 2021, but the company has recently experienced financial difficulties. Meanwhile, some of the chain's debt holders have sought advice from the firm Houlihan Lokey.
In an effort to address its debt, Hooters has been working with Accordion Partners and lawyers from the firm Ropes & Gray to develop a restructuring plan. As the company prepares for potential financial challenges, uncertainty remains regarding its future and the impact this could have on its various branches worldwide.
