According to reports from Bloomberg News, the U.S. arm of Hooters is preparing to file for Chapter 11 bankruptcy within the next two months, joining a growing list of struggling American restaurant chains like Red Lobster, Boston Market and San Diego-based Rubio's. The 42-year-old chain, which bills itself as "the original American wing joint," is grappling with mounting financial pressures, including rising costs for rent and food, and declining customer traffic.
Hooters also faces a $300 million debt burden tied to asset-backed bonds issued in 2021. These bonds, backed by the company's property, brand rights, and franchise fees, have put significant pressure on the company as lenders could force the sale of assets if debts remain unpaid.
The chain's struggles mirror broader challenges in the casual dining industry, where economic shifts and changing consumer preferences have led to closures and bankruptcies for major players like TGI Fridays, Boston Market, and BurgerFi. Hooters has already taken drastic measures, shuttering around 40 "underperforming" restaurants in June 2024, including locations in Florida, Kentucky, Rhode Island, Texas, and Virginia.
The chain's struggles mirror broader challenges in the casual dining industry, where economic shifts and changing consumer preferences have led to closures and bankruptcies for major players like TGI Fridays, Boston Market, and BurgerFi. Hooters has already taken drastic measures, shuttering around 40 "underperforming" restaurants in June 2024, including locations in Florida, Kentucky, Rhode Island, Texas, and Virginia.
This week, the chain also closed one of its family-friendly Hoots Wings by Hooters spin-off restaurants in Orange County, CA, leaving just three of those counter-service locations nationwide. Unlike traditional Hooters, Hoots Wings features male and female servers in non-revealing uniforms, but the concept failed to gain traction after launching in 2017.
Globally, Hooters now operates approximately 300 restaurants, down from 333 in 2018, according to Techonomic. Despite these closures, a spokesperson claimed last year that Hooters "remains highly resilient and relevant," pointing to a new line of Hooters frozen foods now available in supermarkets across America. However, the company’s financial woes suggest otherwise, with industry analysts warning that a bankruptcy filing could lead to further closures of the remaining locations.
Here in San Diego County, the news has raised alarms for fans of the chain, as only two Hooters locations remain operational - one in Plaza Del Rio in Mission Valley and another within Nordahl Marketplace in San Marcos. These sites are currently safe, with assurances from the company that there are no plans to close them at this time. However, their future could be in jeopardy if bankruptcy proceedings move forward.
Historically, San Diego County was home to several Hooters branches, including popular spots in downtown San Diego, Rancho Bernardo, Oceanside, Westfield Plaza Bonita in National City, and long ago in Pacific Beach. The downtown San Diego location, a Gaslamp Quarter fixture for nearly two decades, closed in late 2017, with the 6,600 square-foot space now occupied by WNDR Museum. Other closures in the region over the years have left only the Mission Valley and San Marcos locations standing, making them critical holdouts for the brand locally.
Chapter 11 bankruptcy would allow Hooters to restructure its debts, renegotiate leases with landlords, and potentially emerge leaner and more financially stable, as Red Lobster did. However, the process could also lead to additional closures, threatening the survival of the San Diego County locations and the chain's global presence.
Hooters, owned by private equity firms Nord Bay Capital and TriArtisan Capital Advisors since 2019, has faced declining revenues and bond downgrades from Kroll Bond Rating Agency, which cited the company’s inability to meet repayment obligations. Despite attempts to expand - opening new restaurants in Las Vegas and Florida as recently as May 2024 - the chain has struggled to maintain its appeal amid rising costs and fewer diners eating out.
For now, San Diego County residents can still enjoy the wings and atmosphere at Plaza Del Rio in Mission Valley and Nordahl Marketplace in San Marcos, but the shadow of bankruptcy looms large over the chain's future. For more information on Hooters, visit
Globally, Hooters now operates approximately 300 restaurants, down from 333 in 2018, according to Techonomic. Despite these closures, a spokesperson claimed last year that Hooters "remains highly resilient and relevant," pointing to a new line of Hooters frozen foods now available in supermarkets across America. However, the company’s financial woes suggest otherwise, with industry analysts warning that a bankruptcy filing could lead to further closures of the remaining locations.
Here in San Diego County, the news has raised alarms for fans of the chain, as only two Hooters locations remain operational - one in Plaza Del Rio in Mission Valley and another within Nordahl Marketplace in San Marcos. These sites are currently safe, with assurances from the company that there are no plans to close them at this time. However, their future could be in jeopardy if bankruptcy proceedings move forward.
Historically, San Diego County was home to several Hooters branches, including popular spots in downtown San Diego, Rancho Bernardo, Oceanside, Westfield Plaza Bonita in National City, and long ago in Pacific Beach. The downtown San Diego location, a Gaslamp Quarter fixture for nearly two decades, closed in late 2017, with the 6,600 square-foot space now occupied by WNDR Museum. Other closures in the region over the years have left only the Mission Valley and San Marcos locations standing, making them critical holdouts for the brand locally.
Chapter 11 bankruptcy would allow Hooters to restructure its debts, renegotiate leases with landlords, and potentially emerge leaner and more financially stable, as Red Lobster did. However, the process could also lead to additional closures, threatening the survival of the San Diego County locations and the chain's global presence.
Hooters, owned by private equity firms Nord Bay Capital and TriArtisan Capital Advisors since 2019, has faced declining revenues and bond downgrades from Kroll Bond Rating Agency, which cited the company’s inability to meet repayment obligations. Despite attempts to expand - opening new restaurants in Las Vegas and Florida as recently as May 2024 - the chain has struggled to maintain its appeal amid rising costs and fewer diners eating out.
For now, San Diego County residents can still enjoy the wings and atmosphere at Plaza Del Rio in Mission Valley and Nordahl Marketplace in San Marcos, but the shadow of bankruptcy looms large over the chain's future. For more information on Hooters, visit
