"Where will we get crappy overpriced food?": Users joke as Hooters reportedly prepares to file for bankruptcy

Hooters, the American restaurant chain synonymous with wings, beer, and a very specific brand of... aesthetic appeal, is reportedly gearing up to file for bankruptcy in the coming months.

Bloomberg spilled these beans on Friday.

While this is sad news for Hooters devotees, social media is LOL. One X user humorously asked:

"Oh no! Where will we get crappy over priced food ?!"

Bad food with vibes is a billion-dollar industry, they’ll be fine.

One user joked:

"Adam Sandler is going to be devastated"

Somewhere, Sandler just sighed and doesn’t know why.

A user added:

"Both owls gone now. I’m never having an owl for my business mascot 😭💀"

The owl curse is real.

A user mentioned:

"This shouldn't be funny, but is 😅"

User is experiencing emotional whiplash in real time.

A user quipped:

"I’m surprised they are still in business tbh"

They just said what the finance department was afraid to admit.

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The struggle is real for Hooters

For years, Hooters has been fighting an uphill battle. The reason cited is not just because people have finally figured out that buffalo wings exist in other places.

Between rising operational costs and shifting consumer preferences, the chain’s financial health has tumbled.

Reportedly, between 2018 and 2023, Hooters’ U.S. systemwide sales took a 15% hit, while the number of locations shrank by about 12%.

And if you’re wondering why, check out their menu prices.

Plus, increased food supply costs and skyrocketing rent prices have made it harder for casual dining chains to stay afloat.

Meanwhile, fast-casual and quick-service restaurants are stealing the spotlight; most people want to grab a Chick-fil-A sandwich in their pajamas.

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The great Hooters purge of 2024

In an attempt to stop the financial ruin, Hooters shut down dozens of underperforming locations across the U.S. in June 2024.

Texas got hit the hardest with 17 closures, while Georgia and Florida also took substantial losses.

Now, we might think the situation couldn’t get worse, but Hooters also has financial baggage. Back in 2021, Hooters decided to issue $300 million in asset-backed bonds.

Here’s what that means: they took on a ton of debt, betting that their brand and assets (like property holdings and branding rights) would keep them secure.

Fast forward to today, and that bet isn’t looking too good.

With declining customer traffic, inflation, and increased competition, those financial obligations have turned into a massive weight dragging the company down.

And in case you weren’t paying attention in econ class, debt plus declining revenue equals what’s exactly happening here.

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The last resort: restructuring

To try and stop the ship from sinking, Hooters has called in the legal big guns at Ropes & Gray LLP, a group of experts in corporate restructuring.

As per the media outlet, insiders suggest that if Hooters files for bankruptcy, it’ll likely be under Chapter 11—meaning they’re trying to reorganize their debts and negotiate better terms with creditors.

If all goes well, this could give Hooters the breathing room to get back on its feet.

But if things go sideways, we might see an era where "former Hooters locations" become a thing.

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What does this mean for employees and customers?

For the employees, this isn’t great news. Depending on how the restructuring plays out, some locations might stay open.

And for those working at the soon-to-be-shuttered spots, you might want to scroll through LinkedIn.

There’s a chance that some employees could be transferred to other locations, but that depends entirely on which branches manage to survive.

For customers, if your go-to Hooters makes the cut, it’s business as usual (for now). But if not, you might have to find a new place to pretend to watch sports while stuffing wings.