Restaurant chain Hooters of America filed for bankruptcy in Texas on Monday, seeking to address its $376 million debt by selling all of its company-owned restaurants to a franchise group backed by the company’s founders.

Hooters filed for chapter 11 bankruptcy protection in Dallas on March 31. The Atlanta-based chain of sports bars is known for beer, chicken wings and waitresses who wear skimpy outfits. There are currently 39 Hooters in Texas and more than a dozen in the Metroplex.

A group that includes the restaurant’s founders will buy restaurants from the private equity firm that owns many locations of the chain.