Hooters Closes Two More Georgia Locations Amid Bankruptcy

News Summary

Hooters has shuttered two additional locations in Georgia as part of its bankruptcy restructuring strategy. The closures affect sites on Cobb Parkway and in Augusta, making them part of a larger effort to transition to a franchise model amidst significant debt. Over 30 locations nationwide have closed since the bankruptcy filing, marking a substantial reduction in the brand’s presence. Despite the closures, Hooters retains 10 locations in Georgia. The shift aims to address financial difficulties that have also led to lawsuits and a reevaluation of its operations.

Atlanta, Georgia – Hooters has closed two more of its locations in Georgia as part of its ongoing bankruptcy transition. The closures, confirmed by calls to both restaurants, affect the Cobb Parkway location near Cumberland Mall and another site in Augusta. Both locations now play a pre-recorded message stating they are permanently closed.

The closures come amidst a significant restructuring effort initiated after Hooters filed for bankruptcy in March, citing a staggering $376 million in debt. The company aims to transition to a pure franchise business model, which necessitates the closure of company-owned venues across the country. These developments follow a broader trend, as Hooters has already closed several Georgia locations in Atlanta, Douglasville, Gwinnett, and Valdosta over the past few months.

Since the bankruptcy filing, over 30 Hooters locations across the United States have been shuttered, marking a significant reduction in the brand’s footprint. As part of its restructuring plan, Hooters has agreed to sell all 151 company-owned restaurants to franchisees, which will further shift the restaurant chain’s operational model.

Despite these closures, Hooters still maintains 10 locations in Georgia. The Augusta location, in particular, has been well-known for its popularity during the Master’s Tournament, where it has famously hosted golf fans in a massive tent. This location has also drawn notable figures, including celebrities like pro golfer John Daly, for promotional events and meet-and-greets.

Hooters’ challenges extend beyond just location closures. The company has faced lawsuits concerning its hiring practices and has struggled with efforts to rebrand its image. Financial obstacles have forced the chain to rethink its operations, even leading to the sale of non-core assets, such as a hotel-casino in Las Vegas. Moreover, Hooters has run into scrutiny for allegedly failing to meet financial obligations related to sponsorship deals, including partnerships with NASCAR.

In announcing its decision to close certain locations, Hooters has indicated that the closures were a result of careful consideration to better position the company for its future. While the restructuring phase continues, it remains to be seen how these changes will impact the brand’s overall market presence.

As Hooters navigates through this challenging period, the focus remains on the transformation towards a franchised model and the associated impact on its legacy as a prominent player in the casual dining industry.

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