Hooters of America Seeks Financial Relief Through Strategic Sale

Restaurant chain Hooters of America has filed for bankruptcy in Texas to manage its $376 million debt. The company plans to sell all its company-owned restaurants to a franchise group supported by its founders in an attempt to restructure and stabilize its financial situation.

Hooters of America, a well-known restaurant chain, has filed for bankruptcy in Texas as it grapples with substantial financial challenges. On Monday, the company revealed plans to tackle its $376 million debt.

The strategy involves selling all of its company-owned restaurants. This sale would be made to a franchise group that reportedly has backing from the original founders of the chain.

This move is seen as a major step towards restructuring and stabilizing Hooters of America's financial outlook, with hopes of regaining its standing in the competitive restaurant industry.

(With inputs from agencies.)