The founding father of Hooters intends to take management of Hooters of America (HOA) following a possible chapter submitting, as reported by Bloomberg.
HMC Hospitality Group is owned by the six founders of the Hooters model, which started life in 1983.
HMC, based mostly in Clearwater, Florida, operates 22 unique places and has been a separate entity since 2002 after promoting the Hooters trademark to HOA however retaining management of the eating places.
HOA has confronted gross sales declines and unit closures whereas HMC’s eating places have reported file gross sales and are increasing, with new development ongoing and plans to enter the Las Vegas market.
The founders’ group goals to duplicate its success throughout greater than 200 Hooters places owned or operated by HOA within the US.
Neither HOA nor HMC has but commented.
HOA has been owned by private-equity corporations Nord Bay Capital and TriArtisan Capital Companions since 2019.
Between 2019 and 2023, HOA skilled a greater than 18% downturn in its US systemwide gross sales and its presence within the home market contracted 10%, in line with the newest information from Technomic.
The corporate had already shuttered quite a few places.
Its debt burden features a $315m entire enterprise securitisation in 2021.
In September 2024, the credit standing company KBRA downgraded HOA’s debt as a consequence of income declines.
HOA has additionally confronted challenges paying distributors, and discontinued funds on a high-profile NASCAR sponsorship, resulting in a $900,000 settlement in March 2024.
Amid these monetary struggles, a report issued in February 2025 revealed that HOA had engaged a regulation agency to arrange for chapter, though these plans aren’t but last.
It was additionally reported that the court docket proceedings are anticipated to start by April 2025.
“Hooters’ founder plans rescue amid chapter fears” was initially created and printed by Verdict Meals Service, a GlobalData owned model.
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