Sources indicate that while no final decision has been made, the filing could take place within the next two months, Bloomberg News reported.

Last year, Bloomberg reported that Hooters was trying to get a handle on its debts, which totaled around $300 million. In doing so, the restaurant shuttered approximately 40 "underperforming" restaurants across the country in 2024. Locations in Rhode Island, Virginia, Florida, Kentucky and Texas were shut down to help the company save on costs.