Hooters sparks fears of mass closures as chain takes drastic action over huge debts.
(Knockers ... LOL)
Hooters - known for its scantily-clad waitresses - is the latest American restaurant chain facing financial problems.
Bosses at the chain are in urgent talks with lenders and advisers as the popular chain tries to address $300 million of debts, Bloomberg reported Wednesday.
Earlier this year, Hooters shuttered around 40 'underperforming' restaurants including locations Florida, Kentucky, Rhode Island, Texas and Virginia as it bid to cut costs.
But debts are mounting and more drastic action is needed for the 41-year-old brand.
If Hooters cannot refinance its debt, it would have to consider bankruptcy and more closures.
Like other struggling chains such as Red Lobster - which filed for bankruptcy in the summer - Hooters is blaming the rising cost of rent and food and customers eating out less.
Hooters, owned by private equity since 2019, has about $300 million in bonds that need to be repaid, according to data compiled by Bloomberg.
Hooters now has about 300 restaurants globally after the closures this year. That is down from 333 in 2018, according to Techonomic.
Hooters, as well as being known for scantily clad waitresses, also calls itself 'the original American wing joint', and celebrated its 40th birthday in 2023.
The first Hooters opened in Clearwater, Florida in 1983. Only last May, it was opening restaurants - three in Las Vegas and three in Florida.
Faced with higher costs, they have put up menu prices - but that has led to a fall in customers.
Big name chains like Applebee's, TGI Fridays and Boston Market have have all recently shuttered restaurants.
Red Lobster filed for bankruptcy in May and shuttered almost 100 restaurants. It has now emerged from bankruptcy.
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