Hooters of America, the casual dining chain that filed for bankruptcy in March, is the focus of a renewed takeover effort led by Real American Beer, the beverage brand founded by wrestling icon Hulk Hogan. According to Business Insider, Real American is pursuing a bid to acquire the entire Hooters of America business, including its restaurants, aiming to steer the struggling chain toward growth.
Real American Beer initially showed interest in acquiring Hooters’ brand name last month. Since then, the company has expanded its team to include seasoned professionals with expertise in managing restaurant chains. CEO Terri Francis emphasized the company’s dedication to preserving and revitalizing Hooters as a distinctive American brand. “Hulk Hogan and Real American Beer are fully committed to protecting and revitalizing the iconic American brand Hooters,” Francis said.
The newly assembled team brings a comprehensive approach to the bid, covering areas such as real estate management, franchising, brand development, and social media marketing. Approval of the bid by the bankruptcy court and Hooters’ creditors remains a critical step, with the terms subject to potential changes.
This offer positions Real American Beer in direct competition with a rival bid from Hooters Inc., the entity run by CEO Neil Kiefer, one of Hooters’ original co-founders, which manages some franchised locations.
If successful, Real American’s bid aims to grow Hooters by diversifying revenue streams, including merchandise sales, and implementing strategies to attract younger diners, particularly those in their 20s and 30s. A source familiar with the bid noted, “Cheap beer and fattening wings aren’t the food or drink of the younger generation. Hulk can solve that.”
However, challenges persist. Due to U.S. liquor laws, Real American Beer cannot directly own restaurant locations, necessitating a partner entity for ownership. Additionally, negotiations with Hooters of America’s bondholders pose hurdles. The chain entered bankruptcy with approximately $376 million in debt, and Real American’s proposal anticipates that debt holders would accept reduced settlements to enable business investment and prevent another bankruptcy.
An insider described the competitive landscape: “It is an uphill struggle as long as someone is bidding the full value of the bonds,” referring to the competing Hooters Inc. bid.
Requests for comment from both Hooters Inc. and Hooters of America were not returned.
Hooters, founded in 1983 in Clearwater, Florida—Hulk Hogan’s hometown—expanded to hundreds of locations domestically and internationally. The brand even ventured briefly into aviation with Hooters Air in the early 2000s. Ownership shifted to private equity firms Nord Bay Capital and TriArtisan Capital Advisors in 2019.
Facing declining sales, the chain closed roughly 40 locations in 2023. At bankruptcy filing, Hooters operated about 300 restaurants, with recent announcements signaling plans to close an additional 30 sites.
Real American Beer aims to transform the chain’s trajectory. “This isn’t about preserving nostalgia,” Francis stated. “It’s about unlocking Hooters’ next era of growth.”
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