Hooters Inc. and Hoot Owl Restaurants LLC Continue to Make Progress with Historic Transaction with Hooters of America

CLEARWATER, Fla., June 5, 2025 /PRNewswire/ -- In response to the recent announcement of Hooters of America store closures, Hooters Inc and Hoot Owl Restaurants LLC (the "Buyer Group") reiterate that the restructuring transactions that would allow the Buyer Group to acquire more than 100 HOA-owned restaurants are still proceeding as contemplated. As part of the restructuring transaction, there was the expectation from both HOA and the Buyer Group that these store closures would occur before the transaction was finalized. Both parties still expect approximately 200 domestic Hooters restaurants and 60 international Hooters restaurants to remain open at the transaction's expected closing in August 2025, representing approximately $700 million in systemwide sales. Upon closing of the transaction, the Buyer Group anticipates operating approximately 130 Hooters restaurants, or approximately 65% of the domestic Hooters locations. 

The Buying Group is comprised of existing Hooters franchisees, including the original Hooters founders, who collectively currently own and operate over 30% of the domestic franchised Hooters locations.  These highly experienced operators currently operate 14 of the 30 highest volume Hooters restaurants and in 2024 realized average restaurant revenue that was over double those of the HOA-owned restaurants.  By transferring over 100 Company-owned restaurants to a group of operators who have each been in the Hooters system for over 30 years, HOA will be able to greatly simplify its existing business while also putting these stores in the hands of the best possible operators to maximize their future success. All existing Hooters franchise locations, including those restaurants located outside the U.S., will continue to be operated by the Company's franchise and license partners.

In April, the parties negotiated the key terms to acquire more than 100 HOA-owned restaurants and a management agreement under which Hooters Brand Management, LLC ("HBM"), an entity owned by the Buyer Group and other parties with deep experience with the Hooters brand, will provide the majority of the franchise support functions on behalf of HOA.  The parties are in process of finalizing the definitive documentation to be presented to the bankruptcy court in the next few weeks.

In conjunction with the sale and to further streamline HOA's business, HBM has also negotiated the key terms of a management agreement with HOA under which HBM will assume most of the franchise support obligations of Hooters, including oversight of the national ad fund, the central purchasing organization, franchise development and support and other key franchise functions.  Upon completion of these transactions, the Buyer Group intends to return Hooters to the core principles that initially drove its success, including some of its original recipes and original Hooters Girls uniforms.  In addition, the Buyer Group is committed to investing significant resources into the restaurants to bring them up to the high standards of the Buyer Group's current Hooters' restaurants.

"We are confident that the acquisition will be finalized later this summer and we are excited to move forward into the next chapter of the Hooters brand. Decisions about store closures are never easy to make but all parties are completely aligned in bringing the necessary resources required to make the remaining 200 domestic Hooters locations as successful as possible.  The Buyer Group has been extremely impressed with the restaurant-level employees of the restaurants they are acquiring and are excited to welcome them into the Hooters Inc. and Attila Wings organizations," said Neil Kiefer, CEO of Hooters Inc. on behalf of the Buyer Group. 

The Buying Group is being represented by North Point Mergers & Acquisitions and Morrison & Foerster LLP is serving as their legal counsel.

About Hooters Inc.
Hooters Inc., founders of the Hooters concept, own and operate 22 Hooters Restaurants in Tampa Bay and Chicagoland and two Hoots locations in Chicagoland.  For over 40 years, the Original Hooters group has been known for its World Famous Chicken Wings, fun atmosphere, and legendary service from the iconic Hooters Girls. For more information about Hooters Inc. please visit www.originalhooters.com or follow them on Twitter @originalhooters, Instagram @originalhooters and Facebook https://www.facebook.com/originalhooters.

PR Contact: Ilona Wolpin, Anoli Management/ Hooters Inc.
(954) 298-8784
ilonawolpin@anolimanagement.com

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SOURCE Hooters Inc.