“Our renowned Hooters restaurants are here to stay,” said Hooters of America CEO Sal Melilli. The chain says that as it completes the Chapter 11 bankruptcy process, all Hooters locations will be franchisee-owned. Hooters said it plans to exit bankruptcy in about three to four months after completing its transaction deal with a buyer group.

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

Red Lobster, TGI Fridays, and Buca di Beppo filed for Chapter 11 bankruptcy last year, while Bar Louie and On the Border Mexican Grill & Cantina continued the trend in 2025.