Hooters CEO Sal Melilli joins ‘Cavuto: Coast to Coast’ to react to Chipotle blaming inflation as 2Q gross sales disappoint buyers.
Hooters introduced on Monday that it has filed for Chapter 11 chapter — however that does not essentially imply it is going out of enterprise.
In a press launch revealed on Monday night time, the long-lasting restaurant chain defined that it had entered right into a restructuring help settlement (RSA) with “near unanimous support from its key stakeholders.” Chapter 11 chapter safety permits companies to restructure their money owed whereas they proceed to function.
The deal is meant to “effectuate a sale transaction that will facilitate the continued operation of the business under new ownership.”
“Specifically, the Company has reached an agreement in principle with a highly experienced group of current franchisees (the “Purchaser Group”) to acquire and operate certain Company-owned Hooters locations,” Hooters described.
HOOTERS SHUTTERS DOZENS OF ‘UNDERPERFORMING’ RESTAURANTS, OPTIMISTIC FOR FUTURE: REPORTS
Hooters has filed for Chapter 11 chapter. ( Raymond Boyd / Getty Photographs)
“The Buyer Group is comprised of two existing Hooters franchisees (including Hooters Inc., the original Hooters founders), who collectively currently own and operate over 30% of the domestic franchised Hooters locations, including 14 of the 30 highest volume restaurants.”
In Monday’s press launch, Hooters of America CEO Sal Melilli promised that Hooters eating places “are here to stay.”
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Hooters’ CEO vowed the chain is “here to stay.” (Brett Coomer/Houston Chronicle / Getty Photographs)
“Today’s announcement marks an important milestone in our efforts to reinforce Hooters’ financial foundation and continue delivering the guest-obsessed hospitality experience and delicious food our customers and communities have come to expect,” Melilli’s assertion learn.
“I’ve seen firsthand the incredible value and opportunities our brand brings to life, and I look forward to continuing that momentum well into the future.”
Hooters added that it’ll stay open to serve prospects, and eating places will “continue to operate in a business-as-usual manner during its Chapter 11 cases.”
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Hooters cited debt, liquidity issues and fewer prospects as key causes for chapter, in response to Bloomberg. (PAUL J. RICHARDS/AFP / Getty Photographs)
“As part of the Company’s broader business transformation and planning, Hooters is evaluating the Company’s operational footprint as part of its financial restructuring process to position itself to invest its resources in its strongest assets moving forward,” the assertion added. “The Company’s current franchise operations, including its locations outside the U.S., are not impacted by the Chapter 11 process and will continue to be operated by the Company’s franchise and license partners.”
