HOOTERS chiefs have filed for bankruptcy and are set to sell more than 150 restaurants in a desperate bid to save the brand.
Rumors about the future of the iconic chain have swirled for weeks, creating a sense of uncertainty.
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The brand had racked up more than $370 million in debt and execs have taken the decision to file for bankruptcy.
Chiefs have confirmed that 151 restaurants the company owns are to be sold as part of the process.
The restaurants are to be sold to a group consisting of two franchisees.
Officials close to the restaurant giant suggest they could exit bankruptcy in 90 to 120 days.
“Today’s announcement marks an important milestone in our efforts to reinforce Hooters’ financial foundation and continue delivering the guest-obsessed hospitality experience and delicious food our customers and communities have come to expect,” Sal Melilli, the CEO of Hooters America, has said in a statement.
But, restaurant bosses have issued a defiant warning, saying eateries will remain open.
“Our renowned Hooters restaurants are here to stay,” Melilli vowed.
He suggested the buyout could help the restaurant chain go back to its roots.
“The foundation we’ve laid ensures the continued success of our brand – one that is driven by a relentless focus on delivering an exceptional experience each and every visit for our customers,” CEO Neil Kiefer said.
When the bankruptcy process has been completed, all establishments will be franchisee-owned.
Popular American retailers such as Forever 21 and JoAnn have filed for bankruptcy in recent months.
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