Hooters Files For Bankruptcy After Shutting Down Restaurants

Last year, Hooters quietly shut down dozens of restaurants across the United States, and now it looks like there's a good reason for that move as the restaurant chain announced on Monday that it had filed for bankruptcy.

The restaurant chain closed at least 44 of its "underperforming" restaurants across 14 different states last year in a move that it said was in response to "pressure from current market conditions."

"Ensuring the well-being of our staff is our priority in these rare instances," the company said in a statement. "This brand of 41 years remains highly resilient and relevant. We look forward to continuing to serve our guests at home, on the go and at our restaurants here in the U.S. and around the globe."

However, that does not seem to have solved their woes as the company announced on Monday that it filed for Chapter 11 bankruptcy protection in Texas court.

“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,” said Sal Melilli, chief executive officer of Hooters of America in the release.

This move comes after the parent company's CEO revealed plans to make the restaurant chain known for its beer and skantily dressed waitresses a little more family friendly.

Neil Kiefer, CEO of HMC Hospitality Group – the parent company of the group of men who created the Hooters brand – recently spoke to Bloomberg about what he called a “re-Hooterization.”

“You go to some parts of the country and people say, ‘Oh, I could never go to Hooters, my wife would kill me,’” Kiefer said. “That’s depressing to us. We want to change that.”

We'll have to see whether or not the bankruptcy process and the re-branding can save the struggling restaurant chain.