PULSE POINTS:

What Happened: Hooters, a restaurant chain known for its chicken wings and servers in distinct outfits, filed for bankruptcy in Texas.

Who’s Involved: The company founders, current owners, and a private equity firm are involved in the bankruptcy proceedings.

Where & When: The filing was announced on Monday in Texas.

Key Quote: “Our renowned Hooters restaurants are here to stay,” stated the company in its announcement.

Impact: The filing aims to maintain operations and transfer company-owned locations to franchise status.

IN FULL:

Hooters, a restaurant chain recognized for its chicken wings and buxom serving staff, has filed for bankruptcy in a Texas court, as announced by the company on Monday. The bankruptcy agreement puts forth a plan where the company’s founders, who oversee about a third of the independent franchise locations in the U.S., are set to purchase U.S.-based company-owned restaurants from the existing private equity owner.

The restructuring plan intends to facilitate the popular chain’s ongoing operations and keep many locations open. “Our renowned Hooters restaurants are here to stay,” the company said in a statement following the bankruptcy announcement. “It’s always hang time at Hooters.”

Hooters founder Neil Kiefer stresses that the restaurant chain will undergo a significant rebrand, however. Derisively dubbed a “breastaurant,” the chain will be reimagined as a more family-friendly venue. Kiefer notes that its Clearwater, Florida flagship—where the chain was founded—has long embraced a more family-focused theme than most of its franchises across the country. “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 in a recent media interview. “That’s depressing to us. We want to change that.”

Hooters operates over 400 locations across 42 states and 29 countries. Franchised locations, including those internationally situated, are not impacted by the bankruptcy. The company plans for all remaining sites to transition into franchises following the proceedings. Rumors of the bankruptcy filing have been circulating for several months, amid recent closures of several Hooters establishments last year.

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