Hooters Closes Over 30 Locations Amid Bankruptcy Restructuring

Columbia, SC – Hooters Closes Over 30 Locations Amid Bankruptcy Restructuring

Hooters has permanently closed more than 30 of its company-owned restaurants as part of a financial restructuring initiative following its bankruptcy filing in March 2025. On June 4, 2025, the popular casual dining chain announced the closure of locations across various states, significantly impacting its operations.

In South Carolina, two of the seven Hooters restaurants in the state, located in Columbia and Rock Hill, have been shut down. However, the company confirmed that five additional restaurants remain operational in Anderson, Greenville, Myrtle Beach, North Myrtle Beach, and North Charleston.

Financial Restructuring and Franchise Transition

These closures are a critical aspect of Hooters’ shift towards an all-franchise business model, which involves divesting over 100 company-owned locations to existing franchisees. The transition will be facilitated under the name Hoot Owl Restaurants LLC. This move aligns with the company’s broader strategy to adapt to changing market demands.

At the time of its bankruptcy filing, Hooters managed approximately 420 restaurants in 29 countries. Once the ongoing sales and restructuring efforts are completed, the chain is expected to operate around 200 locations in the United States and 60 internationally. The closures and changes signal significant challenges within the casual dining sector, which is grappling with inflation, rising labor and food costs, and shifts in consumer preferences.

Previous Closures and Ongoing Challenges

Prior to these recent closures, Hooters had shut down around 40 underperforming locations in the previous year. This ongoing effort to streamline operations and enhance profitability is indicative of a trend seen across the casual dining landscape, which is adjusting to meet evolving consumer habits.

Factors contributing to these recent closures include economic pressures such as inflation and increased operational costs that have made it challenging for many dining establishments to maintain profitability. The move to an all-franchise model aims to alleviate some of these financial burdens by reducing the number of company-owned restaurants.

Employee Support and Future Outlook

Hooters has expressed its commitment to supporting employees affected by the store closures and has acknowledged the loyalty of its customers during this period of transition. Although inquiries regarding a comprehensive list of closed locations and notification timelines for impacted employees remain unanswered, the company is making strides to provide necessary assistance.

CEO Nel Kiefer indicated confidence in the future success of the Hooters brand once the restructuring and ownership transition have been fully realized. The company aims to finalize the bankruptcy restructuring process within 90 to 120 days, pending court approval.

Legal Challenges and Adjustments

Over the years, Hooters has faced its share of challenges, including legal issues tied to its business model, which prominently featured female waitstaff. The company settled a lawsuit for $250,000 related to discrimination claims and has since been taking steps to enhance its corporate image and ensure compliance with changing labor regulations.

The recent closures and restructuring signal that numerous food chains, like Hooters, must navigate the complex and ever-changing landscape of the U.S. casual dining sector. As Hooters embarks on this pivotal transition, its ability to adapt to market dynamics will likely determine its long-term success.