After bankruptcy, breastaurant chain closes more restaurants
By Daniel Kline
Published on March 4, 2026.
The Hooters restaurant chain, which survived a Chapter 11 bankruptcy in 2025, continues to close restaurants after emerging from that bankruptcy. The company, which pioneered the "breasaurant" model, faced issues such as inflation, high costs of labor and food, and declining consumer spending. The chain's original owners, who bought the chain back as part of its Chapter 11 reorganization process, envisioned the chain as family-friendly. However, decisions by its private equity overlords have since alienated the brand, including the introduction of new waitress uniforms and theme nights where servers wore only bikinis. Despite the Chapter 11 filing, Hooters continued operating its restaurants during the bankruptcy process. Following the bankruptcy, the company closed dozens of underperforming company‑owned locations during the restructuring process.
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