Late last week, Bloomberg reported that Hooters for America is in talks to prepare a bankruptcy filing in the coming months.
Though the future of the international casual dining chain is currently unclear, it appears that Hooters restaurants in Louisiana have no plans to close.
“Hooters Louisiana locations are completely separate entities from Hooters of America,” Hooters of Louisiana wrote in a Facebook post on Tuesday. “The recent news concerning the possible bankruptcy of Hooters of America has no impact on Hooters Louisiana locations.”
Hooters of Louisiana adds that its Louisiana locations have been “thriving” for the past 34 years and that it looks forward to serving Louisiana for 34 more.
Hooters of America is working with law firm Ropes & Gray to ready a bankruptcy filing, according to Bloomberg, with the court process likely to begin within the next two months.
While Hooters of America has yet to formally address why it is weighing bankruptcy, the company is known to be facing debt and liquidity problems.
Inflation is another pain point. According to data firm Black Box Intelligence, restaurant prices increased by about 44% from 2015 to March 2024, compared to a 26% increase for grocery items over the same period. Those inflated prices have made consumers less interested in eating out.