Hooters negotiate to present a failure in the coming months

Hooters negotiate to present a failure in the coming months


The restaurant chain has been subjected to problems due to the autumn of customers, according to Bloomberg Report

The restaurant chain Hooters of America He is working with creditors in a plan to renovate their business through a request for the failure, which should take place in the coming months, according to a relationship of Bloomberg.

The process is prepared by the Ropes & Grigio law firm, but sources have referred to the relationship that the plans are not yet definitive. The request must be formalized in court within the next two months.

According to the report, Hooters had to face financial problems due to the drop in customer flow. Several units have already been closed. By 2021, the network issued about 300 million dollars in opposing securities, according to the data compiled by Bloomberg. The securities were structured as securitizations for complete companies, a type of common financing between restaurants.

The company was working to deal with its debt with its lawyers, as well as with the accordion partners, said Bloomberg. Some Hooters debt holders have resorted to Holihan Lokey Inc. for advice. The representatives of Hooters, the partners of the accordion and the ropes and Gray did not respond to the requests of Bloomberg’s comments. A representative of Humelihan refused to comment.

Closure since 2018

In 2024, The CNN report showed that dozens of network units had been closed in the United Statesincluding the States of Florida, Kentucky, Rhode Island, Texas and Virginia. The increase in food prices and the cost of labor were two of the causes underlined by the company.

A Hooters spokesman complained about the closure of low performance stores in an interview with the issuer and said that, despite the closures, the 41 -year -old was “highly resilient and relevant”, focusing on his new line of frozen foods sold in the supermarkets and to open new restaurants abroad.

According to the CNN, Hooters had about 300 global offices, a drop of almost 12% from 2018, according to Tecnomic, a restaurants consulting company. Respect, rivals such as Twin Peaks and Dave & Busters have grown since then.

Price increases in restaurants and fast food in the United States last year made customers reducing shopping and advertisements online, undermining the reputation of the sector accessibility. In addition to Hooters, the issuer stresses that other chains were also affected by the concern of customers for money, with Applebee, TGI Friday and the red lobster failed among those who recently closed restaurants.

Source: Terra

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