Hooters, the iconic restaurant chain known for its wings and waitresses in bright orange shorts, has filed for Chapter 11 bankruptcy—but insists the brand isn’t folding. The company announced the move on Monday, March 31, 2025, revealing plans to sell all 100 of its company-owned restaurants to a franchisee group led by some of the brand’s original founders.

Despite financial troubles, rising costs, and a changing dining landscape, Hooters says it’s sticking around and is preparing to relaunch with a renewed focus.

The buyers—two franchisee groups operating Hooters locations in Tampa and Chicago—already control roughly one-third of the franchised restaurants in the U.S. According to the press release, the restructuring is aimed at strengthening the chain’s finances and reviving its image under leadership that understands the brand’s origins.

“This announcement marks a key milestone in our mission to reinforce Hooters’ financial foundation and continue delivering the guest-obsessed hospitality experience our customers have come to expect,” said Sal Melilli, CEO of Hooters of America.

The company is seeking to emerge from bankruptcy in 90 to 120 days, and during this process, it will evaluate its operational footprint—potentially leading to more restaurant closures. Dozens of locations were shuttered in 2024 due to escalating food and labor costs, issues that have plagued many in the fast-casual dining industry.

Hooters now joins a growing list of food chains, including Red Lobster and BurgerFi, that have filed for bankruptcy in recent years. These brands have struggled to keep up with inflation, wage increases, and shifting consumer expectations.

The buyout group includes original Hooters founders, notably Neil Kiefer, CEO of Hooters Inc. In a statement, Kiefer emphasized that the transition will return the brand to its core identity, saying the chain had drifted from its roots under various private equity owners.

“For many years now, the Hooters brand has been owned by private equity firms and other groups with no history or experience with Hooters,” Kiefer said. “Now, with the original founders leading the turnaround, we’re getting back to what made Hooters great.”

In a recent interview with Bloomberg, Kiefer also hinted at a shift in branding—suggesting that the new direction may aim to make Hooters more family-friendly, a notable pivot from its historically male-centric image.

Private equity firms Nord Bay Capital and TriArtisan Capital Advisors acquired Hooters in 2019. But like many legacy dining brands, Hooters has faced lawsuits over the years, including claims of racial and gender discrimination, which further complicated its public image.

Even as it navigates bankruptcy, the brand’s message remains upbeat. “Our renowned Hooters restaurants are here to stay,” the company stated.

As the chain reorganizes, it’s betting that its famous wings, updated strategy, and a touch of nostalgia can bring it back to life—minus some of the baggage.