The Company will seek a financial restructuring of its current debt after negotiations with its primary bondholder recently collapsed. The filing is intended to protect Hooters Hotel Casino’s assets and ongoing hotel services to its guests. Chapter 11 of the U.S. Bankruptcy Code allows a company to continue operating its business and managing its assets in the ordinary course of business. The U.S. Congress enacted Chapter 11 to encourage and enable a debtor business to continue to operate as a going concern, to preserve jobs and to maximize the recovery for all stakeholders.
All hotel and casino operations will continue as normal during the process, including The Company’s responsibilities and respect to employees, customers and vendors.
“We regret that we have been unable to reach an acceptable settlement with our new bondholder. We are confident that an orderly and transparent Chapter 11 process will provide the Company with the opportunity to properly restructure its balance sheet and emerge as a stronger business, while also continuing to operate with no disruption to our customers, employees and vendors. Absent the significant debt payments we’re currently obligated to pay, Hooters Hotel & Casino is a profitable, successful business and we look forward to completing this process to return our entire focus to running our business and serving our guests. This action in no way affects the operation of the more than 430 Hooters Restaurants in 44 states and 27 countries which are owned or franchised by Atlanta based Hooters of America, LLC.” The Company stated in a Press Release.
Conveniently located one block from the Las Vegas Strip and across Tropicana Blvd. from MGM Grand Hotel and Casino, Hooters Casino Hotel offers guests 696 rooms and suites, eight restaurants and bars, a 30,000-square-foot “Hooters”-themed casino floor offers approximately 590 slot and video poker machines and 20 table games.