U.S.-based restaurant chain Hooters has filed for bankruptcy protection, according to the Associated Press. HOA Restaurant Group filed the motion for Chapter 11 protection on Monday.
The company ran into financial woes as its debts mounted, but it says it intends to stay open and resolve its troubles within months. A group of the company’s original founders that own almost a third of Hooters’ U.S. locations, including about half of its biggest volume restaurants, plans to buy and operate more of the outlets, Hooters said in a news release.
Hooters had sponsored the No. 9 NASCAR car driven by Chase Elliott since 2017, but last year, Hendrick Motorsports ended its ties to the longtime sponsor because it was not meeting its financial commitments. Its business strategy has faced challenges over the years, including lawsuits over its hiring of only “Hooters Girls” to serve customers.
Last year, the company agreed to pay $250,000 and provide other relief to settle a race and color discrimination lawsuit brought by the U.S. Equal Employment Opportunity Commission against a Hooters outlet in Greensboro, North Carolina.
