Once again, shockwaves are set to be sent throughout the NASCAR community. Rumors are growing that this billion-dollar brand, once synonymous with high-speed racing and iconic marketing campaigns, is now grappling with severe financial woes. Just a year after abruptly splitting from Chase Elliott and his team. 

Hooters has a long and storied history in the sport. Back in 1992, they sponsored driver Alan Kuwicki, who won the Cup Series Championship, beating out none other than Bill Elliott, Chase Elliott’s father! Hooters left the sport in 2003 but made a return to the Truck Series in 2007, sponsoring the likes of Brad Keselowski. They moved up to the Xfinity Series in 2016 and felt like they found a home at Hendrick Motorsports with Chase Elliott, sponsoring them since 2017 for 7 long years. However, their joy ended in 2024, as they reached a point of no return.

What’s the matter with Chase Elliott’s former sponsor?

As whispers of Hooters’ bankruptcy grew louder, fans and industrialists assumed the potential fallout—both on and off the track. Many question whether this beloved brand will find its way to recovery or become another casualty of economic uncertainty. A recent Bloomberg report reveals the details behind the decline of Hooters and what lies in their future.

The partnership between Hooters, Chase Elliott, and Hendrick Motorsports stopped overnight. The restaurant chain had a good sponsorship since 2017, but could not pay its way financially, leaving Hendrick Motorsports with no choice but to cut ties in 2024. To settle unpaid sponsorship fees of over $1.7 million, Hendrick Motorsports filed a lawsuit against the organization in 2024. The termination of their contract also drastically impacted the NASCAR race schedule, as Hooters already sponsored two NASCAR races and had one remaining at Richmond Raceway.

Bloomberg recently reported that Hooters of America is engaged with creditors and has employed the law firm Ropes & Gray to assist in preparation for a possible bankruptcy filing within the coming months. The move is to assist Hooters in restructuring business through the bankruptcy court. The plans are not yet finalized, but should they go ahead, the court proceedings are likely to commence in the next couple of months. But how did they end up here?

Hooters are in a deep well of trouble financially. This includes a debt of approximately $300 million, reported in September 2024, from the asset-backed bonds issued in 2021. They even sought out debt advice in 2024 from Houlihan Lokey Inc. according to the report. However, none of the parties chose to comment on the situation.

Going ahead, the steps involved the closure of around 40 underperforming locations across the U.S. places such as Rhode Island, Virginia, Florida, Kentucky, and Texas. While these actions target expense reduction and the introduction of a new venture, “Hoots Wings by Hooters,” reduced customer traffic and high operating costs continue to drive costs.

Whereas, taking the route to bankruptcy like Red Lobster or TGI Fridays may allow Hooters to become a stronger entity after the restructuring of its operations. However, casual dining chains like Hooters have been facing issues over recent years with increased prices and lower footfall.

Although the Hooters and Chase Elliott partnership ended abruptly, a new sponsor stepped up, allowing him to continue his pursuit of destiny. 

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Who stepped in for the No. 9 Chevrolet? 

It was in August 2024 when the announcement came that Coca-Cola would take over the primary sponsor role for Chase Elliott’s No. 9 Chevrolet at the Richmond Raceway. Whereas going ahead, in the current season and till 2027 to come, Amazon Prime Video partnered with Hendrick Motorsports as a primary sponsor for Elliott. 

As Stacey Rosenson, the head of U.S. Sports Marketing, at Prime Video, expressed, “We’re thrilled to work with Hendrick Motorsports and Chase as we begin our NASCAR coverage in 2025. It represents an exciting extension of our new NASCAR relationship. Chase is a wildly popular, championship-winning driver, and we can’t wait to see the No. 9 Prime Video team in action as we approach our streaming debut.” The 2020 Cup Series Champion is a seven-time winner of the Most Popular Driver award and is sure to bring a lot of eyes to Prime Video. Especially considering, they will be broadcasting select races in 2025.

Even Rick Hendrick expressed his happiness over the commencement of this new partnership as he stated, “Welcoming Prime Video to our team is a proud moment, They’ve committed to our sport in a big way and are taking an innovative approach to delivering world-class broadcasts and content to our fans. Hendrick Motorsports is ready to support their efforts, and we look forward to building something special together over the next three years.” 

Prime Video will sponsor three primary races annually and as an associate sponsorship each year. In 2025, they will debut the sponsorship for the No. 9 Chevrolet on April 27 at the Talladega Superspeedway. Moreover, Kansas Speedway on May 11 and the NASCAR All-Star Race at North Wilkesboro Speedway on May 18. Are you excited to see Prime Video on Chase Elliot’s car? Or are you one who misses the Hooters era? Let us know in the comments below!