Hooters survived bankruptcy but has been shrinking ever since. Hooters of America filed for Chapter 11 in March 2025 with roughly $376 million in funded debt, and the brand’s original founders bought it back in late October 2025. At least 55 American restaurants have closed in 2026 alone.
Is Hooters Still Open?
Yes. Hooters still trades, but its American footprint is a fraction of what it was when the chain filed for bankruptcy.
The company never liquidated. It restructured, sold itself to its own franchisees and now operates purely as a franchise business, so individual restaurants close or open at the decision of their operators rather than a single corporate parent.
TheStreet, drawing on compiled closure tracking, counted at least 55 American closures during 2026. Hooters has not published a list of its own, which is why running totals come from outside trackers rather than company disclosure.
As of 23 October 2026, the most recent confirmed closures were the River North restaurant in Chicago and two sites in metropolitan Atlanta, at Kennesaw and Conyers, all reported on 21 and 22 October 2026. No chain-wide shutdown has been announced, and the brand continues to operate in more than 20 countries outside the United States.
The Two Companies That Share the Hooters Name
The business that went bankrupt was not the business that invented Hooters, and that distinction explains most of the confusion around the story.
Hooters Inc. was incorporated in Clearwater, Florida, on 1 April 1983 by six local businessmen, who chose April Fools’ Day because they expected the venture to fail. That company still exists and still runs the original Clearwater restaurant.
In 1984 the founders sold franchise rights to an Atlanta investor group. That group became Hooters of America, the entity that expanded the chain across the country over the following four decades — and the entity that filed for Chapter 11 in March 2025.
Neil Kiefer, chief executive of Hooters Inc., put the separation bluntly to Fox News, saying Hooters of America “was a separate corporate entity from the original Hooters team that first founded the brand” and that “while these two groups may have shared a name, they shared nothing else”.
So the headlines announcing that Hooters had gone bankrupt described the Atlanta licensee, not the Florida company whose founders started the brand. Readers of other post-bankruptcy brand stories will recognise the pattern from Rite Aid, where the trading company collapsed and the name continued under different hands.
What the March 2025 Bankruptcy Actually Did
Chapter 11 handed the brand to its franchisees and converted Hooters into a franchise-only operation.
Hooters of America and 29 affiliated debtors filed on 31 March 2025 in the United States Bankruptcy Court for the Northern District of Texas. Court filings put funded debt at roughly $376 million. The chain had 305 restaurants globally at that point, 151 of them operated directly by Hooters of America.
Restaurants kept serving through the case, supported by $40 million in debtor-in-possession financing approved by the court, of which about $35 million was new money.
The buyers were Hooters Inc., the founders’ Clearwater company, together with Hoot Owl Restaurants, a Chicago-area franchisee. Both were already substantial Hooters operators before the sale. The court approved the exit plan at the end of September 2025 and the transaction closed in late October 2025, with the two groups taking 140 of the 198 American restaurants.
The restructuring support agreement also committed the chain to abandoning its mixed model of company-owned and franchised restaurants in favour of franchising alone. Around 30 locations closed abruptly in June 2025 while the case was still running.
Why Hooters Kept Closing Restaurants After Bankruptcy Ended
Most of the 2026 closures trace to landlords and franchisees rather than to the bankruptcy that ended in 2025.
Expiring leases account for several. The Boca Raton restaurant closed early in 2026 after 16 years when its landlord declined to renew, and the South Tampa site on Gandy Boulevard went the same way.
Others reflect the state of the estate the founders inherited. Kiefer told Fox News that “since these acquisitions, we’ve learned some stores were in various stages of need”.
Franchisee decisions explain the largest single cluster. The four Massachusetts restaurants were shut by Hooters of New York/New England, a long-standing Connecticut-based franchise group, and Hooters said the closures formed part of “current efforts to focus, revitalize and strengthen the original Hooters brand across America”.
Property pressure explains others still. The River North restaurant in Chicago, open at 660 North Wells Street since 1991, closed after about 35 years, with a company spokesperson citing “increasing development and neighborhood changes” behind what it called a difficult but considered decision to leave the site.
Kiefer’s position is that the shrinking count is not the measure of the business. “The number of stores will go up and down, but the longevity of our commitment will not,” he said, adding that “these store closures are not an indication of brand strength”.
Which States Have Lost Hooters Completely?
Four states had no Hooters left by the middle of 2026, according to closure tracking cited by TheStreet and the Washington Times.
- Connecticut: the last restaurant, in Wethersfield, closed in March 2026.
- Minnesota: the final location, at the Mall of America in Bloomington, closed in March 2026 after 33 years.
- Massachusetts: Shrewsbury closed in May 2026, and Dedham, Saugus and West Springfield followed in the week of 25 June 2026.
- New York: the state’s last restaurant closed in June 2026.
Michigan was reported down to a single restaurant, in Saginaw. Florida, the state where the brand began, has also lost long-established sites: the last Jacksonville restaurant closed early in October 2026, ending a presence of about 40 years, and the Panama City Beach location closed in September 2026 after more than three decades. Florida still has Hooters restaurants, the original Clearwater one among them.
The pattern of a chain contracting market by market rather than collapsing at once has become common in casual dining, as the closures at Bahama Breeze and the full shutdown of Beefeater in Britain both showed this year.
What the Founders Are Trying to Change
The founders say they are rebuilding Hooters around food, service and families rather than the sex appeal the chain became known for.
Kiefer has said the brand grew overly sexualised under its previous owners, and the Clearwater group has described plans for a less sexualised, more family-friendly presentation. On taking the company back he said the group was “not just acquiring restaurants” but “taking back the Hooters name to show the world who we really are”, and spoke of rebuilding trust “one wing, one customer, and one family at a time”.
Asked what the business is concentrating on, he named “our community, our staff, our food and our unshakeable dedication to all three”.
The wider brand already has a lower-key format to build on. Hoots, a fast-casual spin-off launched in 2017, runs a reduced menu with both male and female servers in t-shirts and khakis.
Openings have not stopped entirely either. Fox News reported that a restaurant in The Villages, Florida, opened in July 2025, and that the company website listed a site in Lutz, near Tampa, as coming soon.
Frequently Asked Questions
Who Owns Hooters Now?
Hooters Inc., the founders’ Clearwater company, together with the franchisee Hoot Owl Restaurants. The pair completed their purchase of the brand in late October 2025.
How Much Debt Did Hooters Have When It Filed for Bankruptcy?
About $376 million in funded debt. Hooters of America and 29 affiliated debtors filed on 31 March 2025 in the Northern District of Texas.
How Many Hooters Restaurants Closed in 2026?
At least 55 in the United States, based on closure tracking cited by TheStreet. The company has not released an official figure or list.
Is There Still a Hooters in Massachusetts or New York?
No. Massachusetts lost its last four restaurants by late June 2026, and New York’s final location closed the same month.
Is the Original Hooters Still Open?
Yes. The Clearwater, Florida, restaurant where the brand started in 1983 is still trading and is run by the founders’ company.
