US arm of Hooters is preparing to file for bankruptcy

The American arm of Hooters, a legendary restaurant chain that once boasted a slew of popular locations across Australia, is preparing to file for bankruptcy.

Well known American restaurant chain Hooters is preparing to file for bankruptcy.

The chain, known for its chicken wings and waitresses clad in revealing uniforms, is preparing to restructure through Chapter 11, a source close to the matter told Bloomberg News.

It comes after Hooters, which still boasts more than 300 locations across America, shut around 40 restaurants in June.

Samantha Hall and Chelsea Stevens at the VIP Night at Hooters Townsville. Picture: Bryan Lynch

The Hooters menu includes wings and burgers. Picture: Hooters

Bloomberg reports Hooters has engaged the services of law firm Ropes and Gray to assist with the Chapter 11 filing within the next two months.

The report states the chain owes A$471 million.

Hooters once had a vibrant presence in Australia in the mid 2010s with locations in Townsville, the Gold Coast and Sydney.

But they all gradually shut their doors between 2018 and 2021 with the Parramatta site the last to go.

Then manager Lauren Borg and owner Sydney Borg at the former Hooters of Parramatta. Picture: Christian Gilles

Hooters has been around in the US for 42 years and since 2019 it’s been owned by private equity.

Chapter 11 bankruptcy is not always a death sentence for companies – although many Hooters locations will likely shutter.

Lynne Austin was known as the original Hooters model. Picture: Hooters

The filing allows a company to restructure and negotiate with their landlords and banks.

Another popular US chain, Red Lobster, recently emerged from Chapter 11.

Although they had to close 100 restaurants, Red Lobster ultimately cleared its debts and the beloved seafood joint lives on.

Actor Amy Adams was once a Hooters waitress as was former Playboy mansion resident and girlfriend of the late Hugh Hefner, Holly Madison.