Bankruptcy was filed by the US company HOOTERS as it struggles to attract customers.
The Atlanta -based company has filed for bankruptcy, according to Chapter 11 in the Northern District of Texas on Monday, according to court documents. The company’s application reports assets of $ 50 to $ 100 million and liabilities in the same range.
High labor costs, competition from cheaper fast-food chains and reducing restaurant traffic overall have hit Casual Dining Restaurants. The Red Lobster seafood chain went bankrupt last year after a “endless shrimp” promotion that brought money losses, while TGI Friday’s Inc. She filed a request for affiliation in Chapter 11 after struggling to overthrow her downward course.
Model Lynn Austin, the first Hooter Girl.
Hooters is looking for funding
The company is seeking approval of $ 40 million funding by some of its existing lenders, including $ 35 million new capital, said in a press release on Monday. This will provide the company with plenty of liquidity to support activities during Chapter 11, which is expected to last until August, according to the announcement.
Hooters’ founders are planning to make the chain more family -friendly as a way to reverse things, Neil Kiefer, chief executive of the founders, HMC Hospitality Group, told Bloomberg News in a recent interview.
A resolution plan would probably see HMC and other HOOTERS exploitation bodies taking over most of the locations of existing stores in the US currently owned and operated by Hooters of America, although some may be closed.
Complex Hooters’ debt funding could be one of the aspects of a restructuring. Its counterparts are “packaged” as securities of the entire business, through which it binds most of its assets, including franchise fees, as a guarantee.
Source: ot.gr
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