Goodbye to this famous food chain: massive closure of locations in the USA

In recent times, a well-known restaurant chain has begun to experience a radical change in its presence within the United States. Many regular customers have been surprised to see several locations close abruptly, without prior notice or clear explanations.

Hooters has announced the closure of at least 30 company-owned branches in different states across the country. This comes just three months after the company filed for protection under Chapter 11, despite assuring that it didn't plan any closures. These measures have marked a turning point for the company, which is facing a deep restructuring and is seeking to move forward after accumulating a debt of $376 million.

Confirmed closures in more than a dozen states

Since early June 2025, closures of Hooters have been confirmed in a wide variety of locations. Among the affected cities and states are Tuscaloosa in Alabama; several locations in Florida such as Sanford, Orlando, Kissimmee, Melbourne, Jacksonville, and Tallahassee. In Georgia, the establishments in Atlanta, Douglasville, Gwinnett, and Valdosta have also closed.

In Indiana, the restaurants in Greenwood, Lafayette, Indianapolis, and Evansville are no longer operating. Illinois reported the closure of the Rockford location, while in Kentucky the Newport store closed. In Michigan, the locations in Flint, Detroit, and Taylor were affected, and Missouri has closed the downtown St. Louis restaurant.

The South wasn't spared either: in North Carolina, the Charlotte branch is closed, as well as in South Carolina, in Columbia and Rock Hill. Tennessee adds closures in Murfreesboro, Memphis, and Nashville (two locations), and Texas includes the locations in Grapevine, Houston, and San Marcos. In addition, Hooters in Fort Smith (Arkansas) and Madison (Wisconsin) show signs of closure, with their websites offline and phone lines unanswered.

Franchise sales and financial restructuring

As part of the bankruptcy, the Hooters chain has agreed to sell its 151 company-owned restaurants to two franchisee groups based in Tampa and Chicago. These groups already control about a third of the franchises in the United States. The move aims to clean up the company's finances, reduce debt, and launch a more profitable and efficient operation.

Sal Melilli, CEO of the chain, commented that this stage represents a "milestone in strengthening Hooters's financial foundation," according to RetailWire. The company expects to exit Chapter 11 within 90 to 120 days, keeping its operations while improving its structure. This restructuring is key to continuing to offer the experience that customers know, although in a renewed format.

The crisis isn't just financial. The increase in food and wage costs, competition in the casual dining sector, along with controversies over discrimination lawsuits and criticism on social media, have complicated the outlook. In previous attempts, the chain had tried to refinance its debt with bonds backed by franchise revenues, but it wasn't enough.

Although the immediate future seems uncertain, Hooters continues to operate with more than 300 stores open and is betting on a relaunch after the sale and restructuring. The company wants to keep itself relevant, adapting to new times to keep the loyalty of its followers and attract new customers.