The CEO of Hooters, Sal Melili, joins “Cavuto: Coast to Coast” to react to Chipotle to blame inflation as 2q dirty will disappoint investors.
Hoots announced On Monday, he filed a bankruptcy of Chapter 11 – but that does not necessarily mean that he goes bankrupt.
In a press release published Monday evening, the iconic restaurant chain explained that he had concluded a restructuring support agreement (RSA) with “an almost unanimous support for his main stakeholders”. CHAPTER 11 Bankruptcy protection allows companies to restructure their debts while they continue to operate.
The agreement is intended to “carry out a sales transaction which will facilitate the continuous operation of the company under the new property”.
“More specifically, the company has concluded an agreement in principle with a highly experienced group of current franchisees (the” group of buyers “) to acquire and operate certain hooters’ locations belonging to the company,” said Hooters.
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Hooters filed a bankruptcy file in chapter 11. (Raymond Boyd / Getty images)
“The group of buyers is made up of two existing hooters (including Hooters Inc., the original Hooters founders), who currently have and currently operate more than 30% of Hooters franchiseed domestic locations, including 14 of the 30 highest restaurants.”
The news comes a month after reports have broken in February Hooters was planning to file for bankruptcy. Bloomberg cited debt, liquidity problems and fewer customers as key reasons for this decision.
In the press release on Monday, the CEO of Hooters of America Sal Melili promised that the Hooters restaurants “are there to stay”.
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The CEO of Hooters has sworn that the chain is “here to stay”. (Brett Coomer / Houston Chronicle / Getty Images)
“Today’s announcement marks an important step in our efforts to strengthen the Hooters financial foundation and continue to offer the experience of hospitality obsessed with customers and delicious food that our customers and communities expect,” said Melilli’s declaration.
“I saw the incredible value and opportunities that our brand brings, and I can’t wait to continue this momentum in the future.”
Hooters has added that it will remain open to customers, and restaurants “will continue to operate in a usual manner during its cases of chapter 11”.
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According to Bloomberg, Hooters has cited debts, liquidity problems and fewer customers as key reasons for bankruptcy. (Paul J. Richards / AFP / Getty Images)
“As part of the broader transformation and planning of the company, Hooters assesses the company’s operational footprint as part of its financial restructuring process to position itself to invest its resources in its strongest assets in the future,” added the press release. “The current franchise operations of the company, including its locations outside the United States, are not affected by the process of Chapter 11 and will continue to be exploited by the franchise and the license partners of the company.”
