Hooters of America Successfully Completes Restructuring Transactions, Including the Sale of Certain Hooters and Hoots Wings Restaurant Assets

Ropes & Gray advised Hooters of America, LLC and its affiliated debtors, an iconic casual dining and sports entertainment chain, in its successfully completed restructuring process as the company emerges from protection under Chapter 11 of the United States Bankruptcy Code.  Through this process, Hooters of America, completed a number of transactions in connection with its Chapter 11 plan, including a restructuring of its approximately $380 million in funded debt and the sale of a broad portfolio of Hooters and Hoots Wings restaurants to Hooter's Inc. and Hoot Owl Restaurants, L.L.C. (“HI/Hoot Owl”), two of the largest and most experienced franchisees in the Hooters system. The transactions closed on October 31.  

The transactions, executed as part of a court-approved Chapter 11 plan, includes the transfer of restaurant assets, real property leases, and franchise system management functions. The transactions are structured to ensure business continuity, preserve jobs, and maximize value for stakeholders, while enabling HI/Hoot Owl to expand their operational footprint and assume a leadership role in the future development of the Hooters brand.

The Ropes & Gray team included business restructuring partner Chris Dickerson and associate Rahmon J. Brown, corporate M&A partner Patrick Dorime and associate Christopher Hewitt, finance partners Patricia Lynch, Sam Badawi and counsel Patrick Prin, litigation partners Dan McCaughey and Rob Roberts and associate Stephanie Ainbinder, executive compensation & employee benefits partner Matt Jones, employment partner Richard Kidd, tax partner Adam Greenwood and counsel Ariella Mutchler and Sara Clevering.