Hooters of America is working with creditors in a plan to restructure the business Through the bankruptcy court in the coming months, according to people with knowledge of the agreements.
The informal restaurant chain is working with the Ropes & Gray law firm to prepare the presentation, people said, They added that the plans are not definitive and asked not to be identified because they are private preparations. The judicial process will probably begin in the next two months, people said.
The company was working to address its debt load with its lawyers, as well as with restructuring advisors of the Boutique Accordion Partners firm, Bloomberg previously reported. Some of Hooters debt holders have resorted to Houlihan Lokey Inc. to obtain advice.
Hooters representatives, Accordion Partners and Ropes & Gray did not respond to comments requests. A Houlihan representative refused to comment.
Hooters has faced liquidity problems due to the decrease in pedestrian traffic and has closed several branches. LA Cadena sold around US $ 300 million in bonds supported by assets in 2021according to data compiled by Bloomberg.
Bonds supported by assetn Popular product between restaurant chains, gyms and other companies with franchised stores.
