Hooters Restaurant Chain Files For Bankruptcy: What It Means In CT

WETHERSFIELD, CT — Connecticut is certainly in the minority when it comes to the Hooters financial saga with just one location left in the state, but the entire chain was on edge this week in the wake of a Chapter 11 bankruptcy filing.

The company announced the move Monday.

The lone Hooters in the Nutmeg State is located in Wethersfield at 1731 Berlin Turnpike.

The complicated bankruptcy filing is designed to keep many of the locales open, officials said.

"Our renowned Hooters restaurants are here to stay," Hooters Chief Executive Officer Sal Melilli said in response to the filing.

According to the announcement, the company reached an agreement "in principle" with a group of current Hooters franchisees to acquire and operate certain company-owned locations. The buyer group, which includes original Hooters founders, currently owns and operates more than 30 percent of the domestic franchised Hooters locations, including 14 of the 30 highest volume restaurants, according t the announcement.

In conjunction with the proposed sale, Hooters filed voluntary petitions for chapter 11 in a Texas court. The company said it expects to emerge from chapter 11 bankruptcy protection in approximately 90 to 120 days.

It's unclear which company-owned Hooters locations are being sold, and the chapter 11 process does not impact existing franchise locations, the company said.

Hooters restaurants currently remain open and will continue to operate in "a business-as-usual manner" during the Chapter 11 proceedings. However, the company said that, moving forward, it is "evaluating" its "operational footprint" and will invest resources in its "strongest assets."

Last summer, dozens of Hooters locations across the nation permanently closed due to "pressure from market conditions," according to a company statement at the time. One was located in Manchester and the company directed patrons to the next closest establishments.

A Facebook page message said, "After nearly two decades of hot wings, cold beer, and great memories Hooters of Manchester has made the difficult decision to close its doors. Thank you for the many years of patronage and loyalty. We encourage you to visit your favorite Hooters Girl at Hooters of Wethersfield or Hooters of West Springfield."

On behalf of the franchisee group that is acquiring certain company-owned locations, Neil Kiefer said, "As we look toward the future, we are committed to restoring the Hooters brand back to its roots and simplifying ... operations by adopting a pure franchise model that will maximize the potential for sustainable, long-term growth."

To answer customers' questions about the path ahead for Hooters, the company launched an "Our Future" web portal.

Hooters was incorporated on April 1, 1983, by six businessmen, and the first restaurant opened on October 4, 1983, in Clearwater, Florida. The company currently is headquartered in Atlanta, GA.