[CoachKandSportsguy]

paywalled
Bloomberg - Are you a robot?

The restaurant business is a tough one, please patronize your favorite ones even after a bad night, because you may want them to be around for the good nights.

[OrangeBlossomBaby]

Originally Posted by CoachKandSportsguy

paywalled
Bloomberg - Are you a robot?

The restaurant business is a tough one, please patronize your favorite ones even after a bad night, because you may want them to be around for the good nights.

I was just about to post about the bankruptcy preparations! You beat me to it. Wondering how this is going to affect the brand new Hooters being built in the Villages area (if it'll affect it at all).

[Stu from NYC]

We should get together and buy a franchise

[Snakster66]

so....they're going bust?

[ElDiabloJoe]

Originally Posted by Snakster66

so....they're going bust?

I hope their financial reserve chest isn't a sunken chest...

[ithos]

Here is a link to an article without a paywall.
Hooters prepares to file for bankruptcy amid declining foot traffic

The article mentions Chapter 11 bankruptcy so maybe they will still have a location at The Villages. If they do, I hope they can afford the fee to show NFL games.

[MorTech]

For.The.Love.Of.Gawd...Noooooo! The Horror!

Square 1 Burger went bankrupt and I think they still operate at Pinellas.

[HappyTraveler]

Originally Posted by Snakster66

so....they're going bust?

More accurately, they're going t-i-ts up!

Happy to report I've never set foot in one of those places. Too trashy...

[BrianL99]

Originally Posted by HappyTraveler

More accurately, they're going t-i-ts up!

Happy to report I've never set foot in one of those places. Too trashy...

Hooters may go tits up amid tough post-pandemic times for restaurants

[Papa_lecki]

If Wings, Beer and B@@bs can’t make it, the country is certainly lost.

[Topspinmo]

Originally Posted by CoachKandSportsguy

paywalled
Bloomberg - Are you a robot?

The restaurant business is a tough one, please patronize your favorite ones even after a bad night, because you may want them to be around for the good nights.

I could see why with cost of hooters these days….

[MorTech]

Originally Posted by Papa_lecki

If Wings, Beer and B@@bs can’t make it, the country is certainly lost.

MHGA - Make Hooters Great Again.

[Cuervo]

The problem with many restaurants like Hooters is their reliance on gimmicks. Sport bars, Beer halls, etc., these are less restaurants and more meeting places for the likeminded. I'm not putting them down, but how many times do you return to the same theme park.
True restaurants attract customers with the quality of their food, if I'm hungry which is daily, and I want good food places like Hooters is not on the top of my list. I'm not just taking about Michelin star restaurants, I'm also talking about Mc Donald's, they are concentrated on the food and that is what I expect from a restaurant. And I judge the food quality on the price I'm paying, when I go to Mc Donalds, I do not expect the best meal in the world, and I also do not expect to be greeted at the counter by someone wearing a tight outfit.

[spinner1001]

Like the US government, Hooters of America corporate has too much debt and faces higher interest rates. Private equity investor monies with lofty goals buying Hooters of America from other private equity investors in 2019. Corporate restructuring with downsizing and cost cutting are needed. Selling more chicken wings won’t make much of a dent in their corporate debt load and accruing interest expenses to lenders.

Grok3:

### Key Points
- Hooters of America operates and franchises Hooters restaurants, known for casual dining and sports bar atmosphere.
- They primarily have the Hooters brand, with no other brands mentioned.
- In 2019, Nord Bay Capital and TriArtisan Capital Advisors acquired the company; in 2011, they issued $180 million in notes, now facing $300 million debt.
- Financial distress stems from high debt, low foot traffic, and intense competition, leading to closures of underperforming locations.

### Company Overview
**What Hooters of America Does**
Hooters of America, LLC, is a restaurant company that both operates and franchises Hooters restaurants. These restaurants are known for their casual dining experience, sports bar atmosphere, and distinctive waitstaff uniforms, offering American comfort food like chicken wings, burgers, and seafood. As of April 2024, there are approximately 300 locations in the US and internationally.

**Brands**
Hooters of America primarily operates under the Hooters brand, with no other brands associated with the company in public records.

### Financial and Ownership History
**Private Equity Transactions**
- In 2019, Nord Bay Capital and TriArtisan Capital Advisors acquired Hooters of America from H.I.G. Capital, Chanticleer Holdings, and other investors ([Hooters of America, LLC Acquired by Nord Bay Capital and TriArtisan Capital Advisors | Business Wire](https://www.businesswire.com/news/ho...pital-Advisors)).
- This transaction marked a significant ownership change, with the previous owners retaining stakes.

**Debt Financing History**
- In 2011, Hooters of America issued $180 million in senior secured notes ([New Issue-Hooters sells $180 mln in 6-year notes | Reuters](reuters.com)).
- Currently, the company is reported to have $300 million in debt and is seeking advice to manage it, potentially through bankruptcy ([Hooters sparks fears of mass closures as chain takes drastic action over huge debts | Daily Mail Online](Hooters sparks fears of mass closures as chain takes drastic action over huge debts | Daily Mail Online)).

### Financial Distress Analysis
Hooters of America is facing financial distress due to several factors:
- **High Debt Levels:** With $300 million in debt, the company is struggling to manage its financial obligations, leading to discussions with advisors about restructuring.
- **Declining Performance:** The company has closed around 40 underperforming restaurants recently, indicating low foot traffic and revenue declines ([Hooters Taps Advisers to Address Debt as Restaurant’s Revenue Falls - Bloomberg](Bloomberg - Are you a robot?)).
- **Intense Competition:** The casual dining sector is highly competitive, with chains like Twin Peaks posing challenges, potentially impacting market share.
- **Economic Factors:** Inflation, rising costs of rent and food, and changing consumer preferences are cited as contributing to their financial difficulties.

Surprisingly, despite its iconic brand, Hooters has seen a reduction in locations from over 430 in 2016 to around 300 now, suggesting past over-expansion may have contributed to current issues ([Number of Hooters locations in the USA in 2024 | ScrapeHero](Number of Hooters locations in the USA in 2024 | ScrapeHero)).

---

### Comprehensive Analysis of Hooters of America’s Financial Situation

This section provides a detailed examination of Hooters of America, LLC, addressing its operations, brand portfolio, financial transactions, and the factors contributing to its reported financial distress. The analysis is based on publicly available data, news articles, and industry reports, acknowledging the limitations due to the company’s private status.

#### Company Operations and Brand Portfolio

Hooters of America, LLC, is the primary entity responsible for the operation and franchising of Hooters restaurants, a chain established in 1983 in Clearwater, Florida. The company offers a casual dining experience characterized by a sports bar atmosphere, featuring American comfort food such as chicken wings, burgers, and seafood, served by waitstaff known as “Hooters Girls” in distinctive uniforms ([Hooters History and Story - Hooters.com](https://www.hooters.com/about/history/)). As of April 2024, there are approximately 300 Hooters locations in the United States, with a significant presence in states like Texas (55 locations) and Florida ([Number of Hooters locations in the USA in 2024 | ScrapeHero](Number of Hooters locations in the USA in 2024 | ScrapeHero)). The company also operates internationally, with locations in 29 countries, totaling over 420 restaurants globally ([Hooters of America | LinkedIn](https://www.linkedin.com/company/hooters-of-america)).

The brand portfolio is singular, focusing exclusively on Hooters, with no other brands mentioned in public records or reports. This focus has historically leveraged the brand’s high recognition, with 99% unaided brand awareness cited in development strategies ([Hooters® Paves Way for U.S. Development with Second Generation Real Estate Opportunity + Line of Flexible Store Models - PR Newswire](https://www.prnewswire.com/news-rele...302041839.html)).

#### Ownership and Private Equity Transactions

The ownership history of Hooters of America reflects several significant transactions:
- **1983:** The first Hooters restaurant was opened by six businessmen in Clearwater, Florida.
- **1984:** Franchise rights were sold to Neighborhood Restaurants of America, forming Hooters of America, Inc., marking the beginning of its expansion ([Hooters Of America Inc | Encyclopedia.com](https://www.encyclopedia.com/social-...rs-america-inc)).
- **2001:** Hooters of America bought the trademark from Hooters Inc., consolidating control over the brand ([History of Hooters of America, Inc. – FundingUniverse](https://www.fundinguniverse.com/comp...a-inc-history/)).
- **2019:** Nord Bay Capital and TriArtisan Capital Advisors acquired the company from H.I.G. Capital, Chanticleer Holdings, and other investors, with financial terms undisclosed. Previous owners retained stakes, indicating a partial continuity in ownership ([Hooters of America, LLC Acquired by Nord Bay Capital and TriArtisan Capital Advisors | Business Wire](https://www.businesswire.com/news/ho...pital-Advisors)).

This 2019 acquisition was a pivotal private equity transaction, aimed at supporting the next phase of growth, as stated by then-CEO Terry Marks.

#### Debt Financing History

Hooters of America’s debt financing activities include:
- **2011:** The company issued $180 million in senior secured notes, maturing in 2017, with an 11.25% coupon rate, indicating a significant borrowing to fund operations or expansion ([New Issue-Hooters sells $180 mln in 6-year notes | Reuters](reuters.com)).
- **2022:** A $70 million loan was raised, as reported in financial funding rounds, suggesting ongoing financing needs ([Hooters of America Stock Price, Funding, Valuation, Revenue & Financial Statements - CB Insights](https://www.cbinsights.com/company/h...llc/financials)).
- **Current Debt Load:** Recent reports indicate the company is facing $300 million in debt, prompting urgent talks with lenders and advisors to address liquidity issues and potential bankruptcy ([Hooters sparks fears of mass closures as chain takes drastic action over huge debts | Daily Mail Online](Hooters sparks fears of mass closures as chain takes drastic action over huge debts | Daily Mail Online)). This debt level, combined with revenue declines, has led to engagements with firms like Accordion Partners and Ropes & Gray for financial restructuring ([Hooters Taps Advisers to Address Debt as Restaurant’s Revenue Falls - Bloomberg](Bloomberg - Are you a robot?)).

#### Financial Distress Factors

Hooters of America’s financial distress is multifaceted, driven by:
- **Excessive Debt:** The $300 million debt load, particularly in light of recent revenue declines, is a significant burden. The company’s efforts to refinance or restructure through bankruptcy indicate liquidity challenges ([Hooters of America plans for business restructuring through bankruptcy court - Bloomberg By Investing.com](https://www.investing.com/news/stock...g-93CH-3884097)).
- **Low Foot Traffic and Revenue Declines:** The closure of approximately 40 underperforming restaurants, including locations in Florida, Kentucky, and Texas, highlights declining foot traffic. This is attributed to changing consumer preferences, with reports noting a shift towards off-premise dining and virtual locations to boost sales ([The Real Reasons Hooters Locations Are Disappearing - Eat This](https://www.eatthis.com/hooters-locations-disappearing/)).
- **Historical Over-Expansion:** The company’s location count reduced from over 430 in 2016 to around 300 by 2024, suggesting past over-expansion may have led to unsustainable costs, now necessitating consolidation ([Number of Hooters locations in the USA in 2024 | ScrapeHero](Number of Hooters locations in the USA in 2024 | ScrapeHero)). This aligns with reports of sales declines, such as a 1.7% drop from 2017 to 2018 ([Hooters of America has been sold - Restaurant Business Online](https://www.restaurantbusinessonline...-has-been-sold)).
- **Intense Competition:** The casual dining sector faces intense competition, with similar “breastaurant” concepts like Twin Peaks reporting growth, potentially drawing customers away. Economic factors, including inflation and rising costs of rent and food, further exacerbate the situation ([Hooters sparks fears of mass closures as chain takes drastic action over huge debts | Daily Mail Online](Hooters sparks fears of mass closures as chain takes drastic action over huge debts | Daily Mail Online)).

#### Conclusion and Implications

Hooters of America’s financial distress is a result of a combination of high debt levels, declining operational performance, and competitive pressures within the casual dining industry. The company’s historical expansion, while initially successful, appears to have led to over-extension, now requiring significant restructuring efforts.

[elle123]

Originally Posted by ElDiabloJoe

I hope their financial reserve chest isn't a sunken chest...

Some might not give a hoot if it goes "bust."