‘Sexy Restaurant’ Hooters Files for Bankruptcy Protection
“We Will Transform into a Family-Friendly Brand”
The American casual dining brand 'Hooters of America,' known for its female employees wearing revealing outfits as a sales strategy centered on 'sexiness' while serving food, has filed for bankruptcy protection.
According to foreign media including CNN and BBC on the 1st, Hooters filed for Chapter 11 bankruptcy protection in the Northern District Court of Texas on the 31st. The assets and liabilities stated in the filing range from $50 million to $100 million (approximately 73.7 billion to 147.4 billion KRW).
The media pointed out that the restaurant industry has recently been struggling due to ▲high labor costs ▲competition with inexpensive fast-food chains ▲a decrease in customers. In fact, last year, 'Red Lobster' went bankrupt due to an unlimited shrimp refill promotion, and 'TGI Fridays' also filed for Chapter 11 bankruptcy protection.
Founded in Florida, USA in 1983, Hooters is a franchise restaurant with over 430 locations worldwide, popular for its female employees serving in revealing outfits such as cheerleader uniforms and swimsuits.
Although Hooters grew into an international casual dining restaurant, it has been plagued by controversies over 'sexual objectification' for blatantly using female employees' sexual appeal in business, such as dressing them in provocative clothing or having them dance with customers to music or take photos together. In 2007, Hooters entered the Korean market by opening its first domestic branch in Apgujeong, but faced public backlash with criticisms like 'objectifying women,' 'no different from entertainment establishments,' 'disgusting capitalism that only cares about making money,' and 'provocative,' leading to its withdrawal from Korea in 2010, just three years later.
Hooters is expected to be sold after filing for bankruptcy protection. The buyer is known to be the original founders of Hooters. The company plans to transform Hooters into a 'family-friendly brand.' Neil Kiper, CEO of HMC Hospitality Group, which operates Hooters, recently stated in an interview with Bloomberg, "We plan to make the chain more family-friendly as a way to turn the situation around."
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