Atlanta — HOA Restaurant Group, parent company of restaurant chain Hooters, has filed for Chapter 11 bankruptcy protection, entering into a Restructuring Support Agreement (RSA) that will facilitate the continued operation of the company’s restaurants under new ownership. A partnership between two existing Hooters franchises, Hooters Inc. and Hoot Owl Restaurants, reached an agreement with Hooters of America (HOA), to acquire more than 100 HOA-owned Hooters restaurants, which, when added with the franchisees’ existing holdings, will account for approximately 70 percent of Hooters’ domestic locations. Upon completion of the Chapter 11 process, all Hooters locations will be franchisee-owned.
Hooters Brand Management (HBM) will provide most of the franchise support for the company including oversight of the national ad fund, the central purchasing organization and franchise development and support.
Hooters restaurants will continue to operate as usual throughout the bankruptcy process.
North Point Mergers & Acquisitions represented the buying group, Hooters Inc. and Hoot Owl Restaurants, while Morrison & Foerster LLP is serving as their legal counsel.