Hooters of America has filed for bankruptcy in Texas, as it tries to deal with its debts by selling all of its company-owned restaurants to a group backed by its founders.
The firm currently directly owns and operates 151 restaurants, with another 154 operated by franchisees, mainly in the US.
The company said its restaurants, which serve classic American bar food, will stay open during the process and operate “in a business-as-usual manner”.
Like many other casual dining chains, Hooters has struggled in recent years as it faces rising costs and wages, as well as customers spending less.