The CEO of Hooters, Sal Melilli, joins ‘Cavuto: Costa A Costa’ to react to Chipotle blaming inflation as investors of 2q disappointing sales.
Hooters announced on Monday that it was declared in the bankruptcy of Chapter 11, but that does not necessarily mean that it is out of business.
In a press release published Monday night, the iconic restaurant chain explained that it had held a restructuring support agreement (RSA) with “almost unanimous support of its key interested parties.” The protection of chapter 11 in bankruptcy allows companies to restructure their debts while they continue to operate.
The agreement intends to “make a sales transaction that will facilitate the continuous operation of the business under a new property.”
“Specifically, the company has reached an agreement in principle with a highly experienced group of current franchisees (the” group of buyers “) to acquire and operate certain hooters locations owned by the company,” Hooters described.
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Hooters has presented the bankruptcy of Chapter 11. (Raymond Boyd / Getty images)
“The group of buyers is composed of two existing hooters franchisees (including Hooters Inc., the original hooters founders), which collectively have more than 30% of the national franchisee hooters locations, including 14 of the highest restaurants of the highest volume.”
The news occurs more than a month after the reports exploded in February that Hooters was considering declaring himself in bankruptcy. Bloomberg cited debt, liquidity problems and less customers as key reasons for moving.
In Monday’s press release, the CEO of Hooters of America, Sal Melilli, promised that Hooters restaurants “are here to stay.”
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The Hooters CEO promised that the chain is “here to stay.” (Brett Coomer / Houston Chronicle / Getty Images)
“Today’s announcement marks an important milestone in our efforts to reinforce the Hooters Financial Foundation and continue offering the experience of hospitality obsessed with guests and the delicious food that our clients and communities expect,” said Melilli’s statement.
“I have seen firsthand the value and incredible opportunities that our brand gives life, and I hope to continue that impulse in the future.”
Hooters added that it will remain open to serve customers, and restaurants “will continue to operate regularly during their cases in chapter 11”.
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Hooters cited debt, liquidity problems and less customers such as key bankruptcy reasons, according to Bloomberg. (Paul J. Richards / AFP / Getty Images)
“As part of the company’s broader commercial planning and planning, Hooters is evaluating the company’s operational footprint as part of its financial restructuring process to position itself to invest its resources in its strongest assets in the future,” the statement added. “The company’s current franchise operations, including their locations outside the US, are not affected by the process of chapter 11 and will continue to be operated by the franchise and the company’s license partners.”
