Another restaurant chain files for bankruptcy

In a story that has been repeated countless times over the past few months, yet another national restaurant chain has filed for bankruptcy protection.

News snapshot

National restaurant chain is facing $376 million in debt
Hundreds of locations across America, including 3 in NJ and 1 near Philadelphia
Chain is famous for its chicken wings — among other things

Hooters files for bankruptcy protection

Reuters is reporting that Hooters of America filed for bankruptcy on Monday.

To tackle its $376 million debt, the 42-year-old chain, famous for its wings and orange-uniformed waitresses, plans on selling all of its nearly 150 company-owned restaurants to a franchise group backed by the company's founders.

Like many chains, Hooters has faced several hurdles lately — the COVID pandemic, inflation, and high operating costs are just a few.

Hooters on US Route 1 in Lawrence Township NJ recently closed - Photo: Google Maps

For fans of the chain, there is some good news: all of Hooters' restaurants will remain open, including the other 150 or so locations owned and operated by franchisees.

FOX Business quoted Hooters of America CEO Sal Melilli as saying the Hooters chain is "here to stay," and,

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 our customers and communities have come to expect.

Hooters was incorporated in Florida on April Fools Day 1983 by six businessmen: Lynn D. Stewart, Gil DiGiannantonio, Ed Droste, Billy Ranieri, Ken Wimmer, and Dennis Johnson. That date was chosen because they thought their idea was going to be a failure, per Wikipedia. Instead, the chain would rapidly expand to over 400 locations around the world with 15,000 employees.

Hooters near the King of Prussia Mall in King of Prussia PA - Photo: Google Maps