Pour one out for America’s most iconic purveyor of beer, wings, and aggressively orange short shorts, because Hooters is reportedly circling the bankruptcy drain. Turns out, declining foot traffic and a mountain sized bulge of debt is a lethal combo—who knew? 

(Source: Giphy) 

In short, the Atlanta-based chain, which has been treading water since 2019 under the ownership of Nord Bay Capital and TriArtisan Capital Advisors, is now working with Ropes & Gray to figure out how to restructure before it flatlines. The company hasn’t officially filed for Chapter 11 yet, but reports say it could happen within the next two months. In the meantime, Hooters is closing underperforming locations left and right, with Texas alone losing 16 restaurants—which is practically a crime in a state where fried food served on a Double-D platter is a religion. 

So what actually went wrong here? Hooters’ problems are the same ones gutting the rest of the casual dining industry—too much debt, shifting consumer habits, and the undeniable fact that Gen Z would rather order wings from DoorDash than interact with an actual human. However, let’s not pretend there isn’t another specific issue here. The whole business model hinges on dudes showing up for an “experience”, but when you have competitors like Twin Peaks and Bombshells who have been stealing Hooters’ lunch money by doubling down/amplifying the whole “breastaurant” vibe while actually serving decent food—it’s a fatal attack on the OG of male degeneracy. 

(Source: New York Post) 

Plus, like many struggling restaurant chains, Hooters leveraged itself to the hilt in 2021, raising $300 million in asset-backed bonds—a financing trick that lets chains use franchise fees and other assets as collateral. The problem? The strategy doesn’t exactly have a stellar track record of working out. Red Lobster tried it, then filed for bankruptcy. TGI Friday’s tried it, then had to cede control of assets. Hooters tried it, and now we’re here. Meaning, creditors are sweating, because those bonds aren’t looking so hot anymore. The Kroll Bond Rating Agency has already downgraded Hooters’ debt, citing—you guessed it—declining revenue and foot traffic.

So where do we go from here? Well, best case scenario Hooters uses Chapter 11 to reorganize, shed debt, and emerge leaner. Worst case? It goes the way of Blockbuster, and your uncle has to find a new place to awkwardly take his drinking buddies.

(Source: Giphy) 

On the other hand, the company claims it’s still pushing forward with expansion plans, including new locations overseas, because apparently, international markets still have an appetite for what Hooters is serving. My take though? This feels like the end of an era where the t*ts have officially gone up. The casual-dining apocalypse has already taken down bigger names, and if Hooters can’t figure out a way to stay relevant in a world where cleavage is free on TikTok, it’s only a matter of time before the neon owl signs start going dark for good.

For now, we wait to see how this bankruptcy works out for Hooters. And yes, while Hooters is privately owned, Twin Peaks (owned by FAT Brands) is sitting pretty, up 16.44% YTD on their competitors' demise. So with that, place your bets accordingly and as always—stay safe and stay frosty! Until next time… 

P.S. My buddy Jared is sharp as hell—probably one of the smartest guys I know. But when it comes to investing? An absolute clown. Why? Because he doesn’t grasp the one thing that separates winners from losers in the market: information. And not just any information—I’m talking about the kind of intel that Wall Street hoards like the FBI hoards Hunter Biden's laptop—because the second retail traders get their hands on it, their edge starts to disappear.

Moral of the story here? Don’t be a Jared. Get access to the real market-moving data, the stuff hidden behind paywalls and institutional gatekeeping by joining Stocks.News premium. At the end of the day, the market isn’t playing fair—so why should you? 

Stocks.News does not hold positions in companies mentioned in the article.