Hooters Files for Section 11 Bankruptcy

Announced Hooters On Monday, he applied for the bankruptcy of the supervisor 11, but it does not necessarily mean that he is coming from the business.

In a press release published on Monday night, A sign of restaurants He explained that he concluded an agreement on restructuring (RSA) with “almost unanimous support from his key stakeholders”. Section 11 Bankruptcy Protection allows businesses to rebuild their debts as long as they continue to operate.

The transaction is designed to “implement a sale transaction that will promote further business business.”

“In particular, the company in principle has reached an agreement with a very experienced group of modern Franchise (” Buyers Group “) to buy and manage some places owned by the company,”-described the Hutter.

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Hooters filed a bankruptcy bankruptcy application. (Raymond Boyd / Getty Images)

“The buyer group consists of two existing Franchise Hooters (including Hoother Inc., original Hooters founders) who currently own and run over 30% of Hooters, including 14 out of 30 restaurants with the highest volume.”

This news comes within a month after the report crashed in February Hooters considered the possibility of submitting bankruptcy applications. Bloomberg cited debt, liquidity problems and less customers as the main reasons for moving.

In the press -release Monday CEO of Hooters of America Sal Melila promised that the Hooters restaurants are “remaining here”.

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The Hooters CEO promised that the network “will remain here”. (Brett Coomer / Houston Chronicle / Getty Images)

“Today’s message means an important milestone in our efforts to strengthen the Hooters financial fund and continue providing hospitality experience, guests and delicious foods that our customers and communities were waiting,” Melil said.

“I have not seen the incredible value and opportunities that our brand enlivens, and I look forward to pursuing this impetus into the future.”

Hooters added that it will remain open to customer service, and restaurants “will continue to work as usual during its sections 11”.

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According to Bloomberg, Hooters cited debt, liquidity problems and less customers. (Paul J. Richards / AFP / Getty Images)

“As part of the broader transformation and planning of the Hooters business, the company evaluates the company’s operational trace within its financial restructuring process to invest its resources in the strongest assets moving forward,” the statement added. “The current franchise operations of the company, including its location under the US, do not affect the process of the head 11 and will continue to manage the franchise and licensed partners of the company.”