The founder of Hooters intends to take control of Hooters of America (HOA) following a potential bankruptcy filing, as reported by Bloomberg.
HMC Hospitality Group is owned by the six founders of the Hooters brand, which began life in 1983.
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HMC, based in Clearwater, Florida, operates 22 original locations and has been a separate entity since 2002 after selling the Hooters trademark to HOA but retaining control of the restaurants.
HOA has faced sales declines and unit closures while HMC’s restaurants have reported record sales and are expanding, with new construction ongoing and plans to enter the Las Vegas market.
The founders’ group aims to replicate its success across more than 200 Hooters locations owned or operated by HOA in the US.
Neither HOA nor HMC has yet commented.
HOA has been owned by private-equity firms Nord Bay Capital and TriArtisan Capital Partners since 2019.
Between 2019 and 2023, HOA experienced a more than 18% downturn in its US systemwide sales and its presence in the domestic market contracted 10%, according to the latest data from Technomic.
The company had already shuttered numerous locations.
Its debt burden includes a $315m whole business securitisation in 2021.
In September 2024, the credit rating agency KBRA downgraded HOA’s debt due to revenue declines.
HOA has also faced challenges paying vendors, and discontinued payments on a high-profile NASCAR sponsorship, leading to a $900,000 settlement in March 2024.
Amid these financial struggles, a report issued in February 2025 revealed that HOA had engaged a law firm to prepare for bankruptcy, although these plans are not yet final.
It was also reported that the court proceedings are expected to begin by April 2025.
