In 1991, Alan Kulwicki started without a sponsor. It didn’t take more than a few impressive outings before he found his big break! In just his fourth race of the season at the Atlanta Motor Speedway, he positioned his #7 on the pole, and popular restaurant chain, Hooters came calling after driver Mark Stahl failed to qualify. A one-race deal soon turned into a long-term partnership, following Kulcwicki’s eight place finish. Next year, with the Hoot Owl logo on his car bumper, Kulwicki won the Cup Series championship, etching his and Hooters’ name in NASCAR history. Tragically, that iconic partnership was cut short when Kulwicki passed away the following spring in a plane crash, and Hooters temporarily pulled out of racing.

They did make a return in 2003, supporting some other drivers every once in a while. But it wasn’t until their full-fledged comeback with Chase Elliot and the #9 Hendrick Motorsports team in 2017 that they knew they are in for good. Three years later, they witnessed Elliott clinch the Cup Series championship. However, last year they mysteriously backed out of the race at Richmond. The restaurant chain had failed to meet its “business obligations” to HMS and they were forced to end the iconic partnership. While it was reported that Hooters had to close down several outlets, recent reports suggest that they might be looking to file for bankruptcy.

It turns out NHRA champion, Leah Pruett is a big fan of the restaurant chain, a brand that was carefully developed a cult following since 1983 by six Florida businessmen Pruett took it to heart. First off, she posted an Instagram story featuring South Park’s Eric Cartman bellowing, “Noooo.” She followed up with another story of the news piece on Instagram, writing: “How will I get my 3-Mile Island wings now 😒.” If this doesn’t reek of heartbreak enough, take this: The story was also accompanied by the song, “It’s Just a Burning Memory” by the Caretaker, further underlining her mood. So, what did really go wrong with the Hooters?

Last Friday, Bloomberg reported that Hooters of America and its creditors are contemplating a potential bankruptcy plan in the coming months. This plan is aimed at restructuring the restaurant chain and tackling its debt in the near future. Ropes & Gray has reportedly been brought on board to prepare for that potential move and they could file court papers on Hooters’ behalf in the coming two months to start the restructuring process.

This situation comes after Hooters has been contending with debt, liquidity problems, and falling footfalls in its restaurants. Last year, Bloomberg also reported that Hooters had debts that totaled around $300 million. As a result, they were forced to close down approximately 40 “underperforming” restaurants across the country in 2024.

The signs were in place – Hooters sold $300 million in asset-backed bonds in 2021. The bonds, packaged as whole-business securitizations, are collateral. Last year in July, reports emerged of the brand closing dozens of locations nationwide. The price of their dollar wings was a buck-50 more than their rivals like Houligan’s Wally Wings or Frankenstein wings at Merk’s in New Smyrna Beach.

Meanwhile, Pruett isn’t the only sportsperson unhappy with Hooters’ bankruptcy.

The Phoenix Suns guard Devin Booker reacted to the news, tweeting, “Plz don’t go @Hooters.” Kevin Love of the Miami Heat also shared similar sentiments on Instagram writing, “Sad to see the fall of an absolute institution!!! If anyone can save it – it’s the two on the next slide,” it was followed by an AI-generated photo of Booker and his Suns teammate, Kevin Durant, at Hooters.

Top Comment by HbSharp

Sponsors will come and go. It’s been happening for years. Let’s just get along so race fans can enjoy the...more

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Debate

FORT WORTH, TX – APRIL 14: Chase Elliott 9 Hendrick Motorsports Hooters Chevrolet fist bumps fans before the NASCAR, Motorsport, USA Cup Series Autotrader EchoPark Automotive 400 on April 14, 2024 at Texas Motor Speedway in Fort Worth, TX. Photo by Chris Leduc/Icon Sportswire AUTO: APR 14 NASCAR Cup Series AutoTrader EchoPark Automotive 400 EDITORIAL USE ONLY Icon240413180400

Golf influencer Paige Spiranac also showed her support by writing, “Not on my watch,” on X while sharing Bloomberg’s report.

On the other hand, after Hooters failed to honor its commitments to HMS in 2024, the NASCAR team took the restaurant to court over unpaid sponsorship further adding to their troubles.

Hendrick Motorsports sued former sponsor Hooters

For 2024, Hooters was originally slated to be the “primary car sponsor” for three races. Elliott wore its colors in Atlanta and Texas and even won the latter race. However, Hooters dropped out before the Richmond race and eventually parted ways with HMS.

“Hooters has been a valued partner of Hendrick Motorsports since 2017, contributing to our shared successes both on and off the track. In recent months, however, Hooters has not been able to meet its business obligations to our organization. Due to these unfortunate and unexpected circumstances, and despite extensive efforts on both sides to identify a workable solution, it became necessary for Hendrick Motorsports to end the relationship,” HMS said in a statement in July. However, later it emerged that HMS has filed a multi-million-dollar lawsuit against Hooters in an attempt to acquire the sponsorship money the NASCAR team says it’s owed for Chase Elliott’s No. 9 Chevrolet.

Per the court documents filed on July 30 last year, Hooters had to pay Hendrick Motorsports four annual installments totaling $1.75 million. According to the lawsuit, HMS made a partial first payment of $45,000 in March but has not followed up on the remaining payments.

“Hooters has represented to HMS that it will not be paying any portion of the remaining two installments for the 2024 term under the Sponsorship Agreement, as amended, that are due on August 10, 2024 and October 10, 2024,” the plaintiff wrote in its complaint against Hooters.

NASCAR has had a long association with Hooters, with Greg Biffle bringing Kulwicki’s paint scheme from the 1992 season to the 2016 Darlington speedway. As the brand faces a time of distress, NASCAR fans would be hoping for them to come out out if unscathed.