Hooters Hits Hard Times: Over 30 Locations Closed Amid Bankruptcy Struggles

Sanford, Florida - In a significant move affecting its operations, Hooters has closed over 30 company-owned locations across various states, including Florida, Georgia, and Texas. This decision comes on the heels of a Chapter 11 bankruptcy filing in March 2025, where the chain’s leadership asserted that they were “not going anywhere,” despite the financial strains that have pushed them into this restructuring phase. Hooters is now pivoting to a fully franchised business model, shedding its 100 company-owned restaurants to two franchisee groups based out of Tampa, Florida, and Chicago, Illinois. This is part of a broader strategy to optimize the business for long-term stability.

The closures, executed on June 4, 2025, mark a deeper examination of the company’s operational footprint and are not entirely unexpected. “It’s a necessary step,” said Hooters representatives, who emphasized that no franchise locations are set to close. The company has struggled with rising costs in the casual dining sector and inflation, which have impacted consumer spending habits, particularly for lower and middle-income families.

Unpacking the Closures

Hooters has been gradually shutting down locations, a trend that has been evident since early 2024. The recent closures are aimed at preventing further investment in poorly performing outlets, which could jeopardize the overall health of the chain. It’s worth noting that Hooters of America LLC filed for bankruptcy with debts totaling around $376 million. The brand operates approximately 300 locations nationwide, but as it transitions, some restaurant locations have become expendable.

The list of confirmed closed locations includes:

• Sanford, Florida
• Orlando, Florida (Kirkman Road)
• Kissimmee, Florida (Osceola Parkway)
• Melbourne, Florida
• Atlanta, Georgia (Downtown)
• Douglasville, Georgia
• Gwinnett, Georgia
• Valdosta, Georgia
• Greenwood, Indiana
• Rockford, Illinois
• Newport, Kentucky
• Flint, Michigan
• Taylor, Michigan
• St. Louis, Missouri (Downtown)
• Charlotte, North Carolina (South Boulevard)
• Columbia, South Carolina
• Rock Hill, South Carolina
• Murfreesboro, Tennessee
• Memphis, Tennessee (Downtown)
• Nashville, Tennessee (Harding Place)
• Grapevine, Texas
• Houston, Texas (120 FM 1960 W)
• San Marcos, Texas
• Tuscaloosa, Alabama
• Tallahassee, Florida
• Jacksonville, Florida
• Lafayette, Indiana
• Evansville, Indiana
• Detroit, Michigan
• Madison, Wisconsin
• Fort Smith, Arkansas

Amidst the upheaval, Hooters remains committed to supporting its affected employees and is actively working to maintain customer loyalty. They aim to complete their restructuring plan within three to four months, during which they will address the substantial debt and pivot fully to a franchise system. As of now, there are still two active locations in Mississippi: Gulfport and Horn Lake, showing that not all is lost.

With their sights set on the future, Hooters is determined to offer its signature hospitality experience and food, even as it navigates these turbulent waters. Despite the closures, the hope is that the restructuring will allow Hooters to reinvent itself and thrive once more in the competitive restaurant landscape.

For more details, visit KLVI, Clarion Ledger, and Newsweek.