FORMERLY PE OWNED
Hooters
Includes Hooters of America
casual dining · Atlanta, GA
- Acquirer
- Nord Bay Capital / TriArtisan Capital Advisors
- Year Acquired
- 2019
Same PE firm that wrecked TGI Friday's got its hands on Hooters. The results were predictably disastrous.
What Happened
- Nord Bay Capital and TriArtisan Capital Advisors acquired Hooters in 2019, saddling the chain with roughly $376 million in debt
- Filed Chapter 11 bankruptcy on March 31, 2025 — just months after TGI Fridays, another TriArtisan-backed chain, went bankrupt itself
- Sold its 151 corporate-owned locations to franchisees during the bankruptcy process to shed costs
- Emerged from bankruptcy in October 2025 via a founder-led buyout — the people who built it had to buy it back from PE
The Damage Done
- Dozens of locations closed during the bankruptcy — including some that shut without warning, leaving staff jobless overnight
- Years of debt payments meant zero investment in remodeling or updating restaurants — the chain visibly aged while competitors refreshed
- Service quality suffered as corporate cost-cutting reduced staffing levels and limited menu innovation
- A once-iconic American restaurant brand became a cautionary tale — bought by the same PE firm that already wrecked TGI Friday's
Sources
- PE-owned Hooters files for bankruptcy to facilitate founder-led buyout — Private Equity Wire(2025-04-01)
- Hooters files for bankruptcy — CNN Business(2025-03-31)
- How private equity played a role in Red Lobster and TGI Fridays bankruptcies — CNBC(2025-02-25)
- Hooters founders reclaim company as company exits Ch 11 — Nation's Restaurant News(2025-11-03)