Hooters of America is pursuing a sale of its business to a group of franchisees as part of its restructuring.

The company has entered into a Restructuring Support Agreement that allows the franchisees to acquire and operate company-owned Hooters locations.

The buyer group comprises two existing Hooters franchisees, including Hooters Inc – the original founders. They collectively own and operate more than 30 per cent of the domestic franchised Hooters locations.

The company has also filed voluntary petitions for Chapter 11 to facilitate the restructuring and expects to move through this process in 90-120 days. 

Restaurants will remain open and operate in a business-as-usual manner during Chapter 11. The company’s current franchise operations, including its locations outside the US, are not impacted by the bankruptcy protection process.

“Today’s announcement marks an important milestone in our efforts to reinforce Hooters’ financial foundation and continue delivering the guest-obsessed hospitality experience and delicious food,” said Sal Melilli, CEO of Hooters of America. 

“As we look toward the future, we are committed to restoring the Hooters brand back to its roots and simplifying HOA’s operations by adopting a pure franchise model that will maximize the potential for sustainable, long-term growth,” commented Neil Kiefer, CEO of Hooters Inc.