Major Restaurant Chain with Iowa, Illinois, and Wisconsin Locations to File Bankruptcy

According to a Bloomberg report, a popular restaurant known for its buffalo wings and scantily clad female servers, will be filing for bankruptcy in the coming months.

Whether you're a fan of the food or... the atmosphere, Hooters is a ubiquitous chain in America. The instantly recognizable owl logo and "breastaraunt" have become etched in the cultural landscape for decades, with 293 locations across the country. Now, it appears bankruptcy is on the horizon.

As of this writing, there are two Hooters locations in Iowa (Council Bluffs, Davenport); 15 in Illinois (the closest being Rockford); and only one in Wisconsin, which is located in East Madison.

As reported by Bloomberg, the casual-dining chain operator has hired law firm Ropes & Gray to prepare a filing, though the plans are not final at this time. There have been signs of struggle for a while now. In September 2024, credit rating agency KBRA downgraded two tranches of securities issued by Hooters, citing revenue decline.

In addition, Hooters, Inc. took about four times longer to pay its vendors than the average restaurant chain, per Restaurant Business Online. More than 20% of Hooter's outstanding bills were over 90 days overdue last year.

I found a tweet from Matthew Chapman on X that, I feel, succinctly explains Hooters' struggles in the modern day. It was always an establishment that prioritized atmosphere: the scantily clad female servers and a male-centric environment in which to watch a game and drink draft beer. Nowadays, with the prevalence of Doordash and takeout, Hooters isn't the kind of place you instinctively think to order from if you're not going to dine in the restaurant.

Let's face it too: choosing Hooters' wings over the likes of many other businesses is just asking to be underwhelmed.

From 2018 to 2023, Hooters declined nearly 15%, and its domestic footprint shrunk by 12%. Couple this with rising costs and a shift in consumer demand towards quick-service and fast-casual concepts, as noted by Restaurant Business Online, and you have the receipt for a business that might have to close a substantial number of locations in order to stay afloat.

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Hooters unfortunately isn't alone in their struggles. Red Lobster and TGI Fridays have both filed for bankruptcy. Even outside of the restaurant industry, Big Lots, Party City, Joann, and more have been struggling and forced to close many locations.

The news even got Phoenix Suns star Devin Booker to plead on social media for Hooters not to go away entirely. To find out more on Hooters' potential bankruptcy, visit Bloomberg's website.